By Maria Martinez BERLIN, April 14 (Reuters) - Germany must assume that the energy price shock caused by the Iran war will persist, leaving the economic situation extremely fragile, Finance Minister
Germany Faces Ongoing Energy Shock from Iran War, Says Finance Minister Klingbeil
Germany's Economic Outlook Amid Global Crises
By Maria Martinez
Persistent Energy Price Shock from Iran War
BERLIN, April 14 (Reuters) - Germany must assume that the energy price shock caused by the Iran war will persist, leaving the economic situation extremely fragile, Finance Minister Lars Klingbeil said on Tuesday before travelling to the International Monetary Fund spring meetings.
IMF Growth Forecasts for Germany
The IMF cut Germany's growth forecasts for this year and next on Tuesday, projecting growth rates of 0.8% in 2026 and 1.2% in 2027, down 0.3 percentage points from its previous forecasts for both years.
Government Response and Reform Agenda
Stabilizing the Economy and Supporting the Vulnerable
Klingbeil said he will discuss with finance ministers and international organizations which measures are best suited to stabilize the economy and markets, as well as to provide targeted support to people and businesses that have been hit particularly hard.
Calls for Greater Resilience and Independence
"This crisis once again shows that we must become more independent, more crisis-proof and more resilient," he said.
He added that he will use the trip to Washington to present the German government's reform agenda and promote investment in Europe's biggest economy.
International Calls for Peace
Development Minister Reem Alabali Radovan, who will accompany Klingbeil on his visit to Washington, called for an end to the war.
"The international community must not hesitate now: The world needs peace, stability and an end to the violence," she said. "Every day counts."
Continued Support for Ukraine
Germany and Ukraine's Defence Cooperation
UKRAINE MUST NOT BE FORGOTTEN
Germany and Ukraine agreed on defence cooperation plans during a visit to Berlin by Ukrainian President Volodymyr Zelenskiy and his defence minister on Tuesday.
Maintaining Focus on Ukraine Amid Middle East Crisis
"The fact that the world is now focused on the Middle East must not lead to Ukraine being forgotten," Klingbeil said. "It continues its courageous fight for freedom and democracy."
He added that he and his Norwegian counterpart, Jens Stoltenberg, have invited the largest donor countries to a meeting in Washington to discuss how to maintain financial support for Ukraine.
Germany's Military Aid to Ukraine
Germany is Europe's largest provider of military aid to Kyiv. It has delivered about 55 billion euros ($64 billion) since Russia's invasion of Ukraine in 2022 and has set aside 11.5 billion euros in the current budget.
(Reporting by Maria Martinez; Editing by Susan Fenton)
