Germany must prepare for a prolonged economic impact from rising energy prices linked to the Iran war, Finance Minister Lars Klingbeil has said.
Speaking ahead of meetings with the International Monetary Fund (IMF), Klingbeil said the country’s economic situation remains “extremely fragile” due to ongoing pressure in global energy markets.
The IMF has already lowered Germany’s growth outlook, forecasting expansion of 0.8% in 2026 and 1.2% in 2027, both weaker than earlier estimates.
Klingbeil said the government will focus on strengthening economic resilience and protecting households and businesses most affected by high costs. He said Germany must become more independent and better prepared for global shocks.
He is expected to discuss possible support measures with international finance leaders in Washington during the IMF spring meetings.
Development Minister Reem Alabali Radovan, who will also attend the meetings, called for an immediate end to the conflict, saying global attention must not shift away from efforts to restore peace and stability.
“The world needs peace, stability and an end to violence,” she said, urging urgent international action.
Klingbeil also stressed that support for Ukraine must continue despite global focus shifting to the Middle East. Germany remains one of Ukraine’s largest military donors since Russia’s invasion in 2022, providing tens of billions of euros in aid.
Officials say they are working with allies to ensure long-term funding and coordination for Ukraine’s defence and recovery efforts.
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