German finance minister says Trump’s ‘irresponsible war’ on Iran is hurting economy

German Vice Chancellor and Finance Minister Lars Klingbeil on Thursday blamed US President Donald Trump for an “irresponsible war” against Iran, saying the conflict and a resulting jump in energy prices are weighing on the country’s economy and public finances.

“The Iran war, which was triggered by Donald Trump — this irresponsible war and the resulting energy price shock — is slowing down our positive economic momentum,” Klingbeil told reporters in Berlin.

The Social Democrat politician said the Iran conflict, along with Russia’s war in Ukraine and ongoing tariff disputes, is expected to reduce Germany’s tax take in coming years. He said projected tax revenue for 2027 is about €10.1 billion ($11.9 billion) below an October forecast.

According to the latest tax revenue estimate, the federal government, states and municipalities are expected to collect a combined €87.5 billion ($103 billion) less than previously projected over the next five years.

The outlook remains clouded by “major uncertainties” and will require continued crisis management, Klingbeil said. He added that Germany must become more resilient and less dependent on external shocks.

“That’s why we are focusing reforms and investments to make Germany stronger,” he said.