German Finance Minister Lars Klingbeil on Saturday warned against scaremongering over inevitable consequences of the Iran war for the German economy.
“It is important to keep a cool head now, to see the dangers, but also not to talk them up,” Klingbeil, who is also the country’s vice chancellor, told the RND media group.
He was responding to a question about possible strong inflationary effects cause by the escalating conflict in the Middle East.
“We are currently experiencing what always happens at the beginning of a crisis, namely fluctuations in the markets,” Klingbeil said. “But Germany has shown time and again that we can deal with crises well and responsibly.”
At the same time, Klingbeil conceded that there are clearly risks to Germany’s economic growth, which is just slowly regaining momentum: “They affect not only our country, but also the international economy and trade.”
Supply chains are now experiencing disruptions again in some areas, the minister noted.
However, it was not yet possible to say in which direction the situation will develop, and the only certainty is the need for a quick negotiated settlement to the crisis, the finance minister said.
“The longer this war lasts, the greater the economic consequences will be,” said Klingbeil.
Germany is already feeling the effects of the war in the form of sharply rising petrol and gas prices. Steps should be taken to prevent the price gouging of customers, he stressed.
Economy Minister Katherina Reiche will now quickly examine whether antitrust law can be used to take action against the oil companies, said Klingbeil.
“It is unacceptable for oil companies to exploit the crisis and profit from it,” he said. Moreover, the Iran war shows once again very clearly that Germany “must become independent of fossil fuels.”