By Christian Kraemer BERLIN, April 15 (Reuters) - Although Germany is not involved in the Iran war, the country is feeling its economic impact directly, German Finance Minister Lars Klingbeil said on
Germany is not taking part in the Iran war, but it is feeling its effects, Finance Minister says
Germany's Economic and Political Response to the Iran War
By Christian Kraemer
Germany Feels Economic Impact Despite Non-Involvement
WASHINGTON, April 15 (Reuters) - Although Germany is not involved in the Iran war, the country is feeling its economic impact directly, German Finance Minister Lars Klingbeil said on Wednesday.
Asked about the government's forecasts which will be presented next week, Klingbeil said they are in preparation and he could not comment on them.
IMF Growth Forecasts for Germany
"But what we can already see now is that this war is also harming us in Germany in terms of economic growth," he said in Washington on the sidelines of the International Monetary Fund (IMF) spring meetings.
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.
Political Stance and Diplomatic Efforts
Klingbeil criticised the war in the Middle East and advocated diplomacy with Iran to stop the nuclear race instead of military action.
Call for Diplomacy Over Military Action
"I'm not convinced that having a conflict all over the region is the right way," Klingbeil said, adding he hopes diplomatic channels will lead to a lasting and viable peace solution in the Middle East.
Crisis Strengthens Need for Reforms
Structural Reforms as a Solution
CRISIS STRENGTHENS NEED FOR REFORMS
The minister said structural reforms are the answer to all the crises the country is experiencing, as they will make Germany fit for the challenges of the future.
Government Measures and Economic Relief
Germany's coalition government agreed on Monday a package of fuel price relief for consumers and businesses worth 1.6 billion euros ($1.9 billion).
He said responding to the consequences of the war in Iran and implementing structural reforms are not mutually exclusive.
"On the contrary, it is precisely because we want to move away from dependencies, precisely because we want to become more resilient, stronger, and more sovereign, that we must also pursue the path of consistent reform in our country," Klingbeil said.
(Reporting by Christian Kraemer, writing by Maria Martinez, editing by Linda Pasquini and Keith Weir)
