Amid the continued escalating crisis concerning Iran, SPD Parliamentary Group Chair Matthias Miersch has suggested that the government may need to take on additional debt. Speaking to the “Neue Osnabrücker Zeitung” (NOZ), Miersch emphasized that the state’s primary responsibility is to prevent an economic collapse. While acknowledging he doesn’t want to create undue alarm, he stated that if things worsen, all options must be on the table, including formally declaring a budgetary emergency and potentially assuming new debts.
This assertion came amid deep disagreements over budgetary spending limits, particularly after the current coalition government stalled on passing such a resolution. Miersch also addressed warnings from CDU Group Chairman Jens Spahn regarding new debt, countering that a forward-looking perspective is essential. He argued that those who categorically rule out necessary preventative measures are seemingly unaware of the magnitude of potential disruptions posed by a prolonged Iranian crisis.
Furthermore, Miersch warned that the impact of a blockade in the Strait of Hormuz far exceeds issues related simply to oil markets, fueling, or air travel. He stressed that entire global supply chains face the threat of massive disruption and severe economic fallout. He concluded by appealing for organizational readiness, stating that the government must be prepared to maintain social cohesion even if further financial relief measures are necessary.
Regarding specific forms of relief, Miersch advocated for taxable direct payments as a targeted option. He criticized a previous measure, such as the temporary fuel discount, for being rushed and undifferentiated. According to Miersch, given that there is time to plan future aid, a more strategic approach-such as federally taxable payouts, similar to those implemented during the COVID-19 pandemic-would be more socially balanced, as it would require higher earners to repay a greater proportion of the assistance via their taxes.
