Influential economist and personal adviser to SPD finance minister Lars Klingbeil, Jens Südekum, warned that the Iran crisis could have adverse effects on the German economy and inflation. “There is indeed a danger that energy prices will eat into the entire economy, and-after a delay-also affect food prices” Südekum told the broadcaster ntv. “An increase in inflation and a dampening of the economy therefore loom”. He added that the length of the crisis and how far it may worsen are unpredictable.
Südekum said the recently approved fuel‑price package remains appropriate. “If the crisis continues, the next step, in my view, is to look at what Luxembourg is doing” he said. “There, price increases are regulated by the state, preventing the energy sector from taking advantage of the situation to widen margins”.
On whether further measures would be needed if the energy crisis were to intensify, Südekum declined to speculate. He pointed out that the state cannot in general shield citizens from rising prices. “Pumping‑station prices in Germany have risen by about 20 percent, and for this magnitude the measures taken so far are sufficient” he said. “Not every small shock can be cushioned with tax money; the state is not a full‑spectrum insurance provider”.
