Analyzing the Role of the European Union’s Innovative Financial Instruments in the Sustainable Development of Iran’s Economy: A Case Study on Guarantees and Investment Funds
Keywords:
Sustainable developmentAbstract
Due to limited access to international capital markets and the insufficiency of traditional aid mechanisms, Iran requires new financial resources to overcome economic crises and achieve sustainable development. This article examines the role of the European Union’s guarantees and investment funds in enhancing Iran’s sustainable development and economic resilience. The limitations of traditional assistance—such as inflexible financing and sector-specific restrictions—are discussed to underscore the necessity of innovative financial mechanisms. Utilizing a descriptive-analytical and library-based methodology, the study explores the impact of EU financial tools, including the European Investment Bank and the European Investment Fund, on stimulating investment, supporting strategic projects, and improving access to financial resources for small and medium-sized enterprises (SMEs) in Iran. The analysis also emphasizes challenges such as political tensions, sanctions, and bureaucratic obstacles. The findings indicate that EU guarantees and investment funds can offer more flexible and innovative financing solutions capable of attracting larger volumes of capital, including private sector investments. These instruments are able to target strategic sectors essential to sustainable development, and through long-term support, they can promote knowledge transfer, strengthen economic resilience, and accelerate transformative growth in Iran.
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