Iran War Threatens German Economy, Business Leaders Warn

Germany's fragile economic recovery faces new tests from rising energy prices and disrupted global supply chains. David Deissner, head of Stiftung Familienunternehmen und Politik, states that gas and oil prices are very high, eroding competitiveness in energy-intensive sectors such as glass, textiles, and pharmaceuticals.

Shipping disruptions, particularly around the Strait of Hormuz, force vessels to take longer routes around Africa, increasing transport costs and impacting critical resource supplies like helium from Qatar. Deissner also expresses concern that higher oil prices slowing Chinese production will quickly affect German high-tech component imports.

He emphasizes the need for Germany to implement deeper structural reforms, cut non-wage labor costs, reduce bureaucracy, and provide swift tax relief for companies to maintain competitiveness. Deissner hopes for a fast resolution to the conflict to prevent further economic damage.