Published by Global Banking & Finance Review®
Posted on April 14, 2026
3 min readLast updated: April 14, 2026
Add as preferred source on GoogleGermany’s finance minister warns that Germany must prepare for a prolonged energy price shock stemming from the Iran war, while the IMF downgraded growth forecasts for 2026 and 2027. Klingbeil will seek economic stabilization and promote reforms during the IMF spring meetings in Washington.
By Maria Martinez
BERLIN, April 14 (Reuters) - Germany must assume that the energy price shock caused by the Iran war will persist, leaving the economic situation extremely fragile, Finance Minister Lars Klingbeil said on Tuesday before travelling to the International Monetary Fund spring meetings.
The IMF cut Germany's growth forecasts for this year and next on Tuesday, projecting growth rates of 0.8% in 2026 and 1.2% in 2027, down 0.3 percentage points from its previous forecasts for both years.
Klingbeil said he will discuss with finance ministers and international organizations which measures are best suited to stabilize the economy and markets, as well as to provide targeted support to people and businesses that have been hit particularly hard.
"This crisis once again shows that we must become more independent, more crisis-proof and more resilient," he said.
He added that he will use the trip to Washington to present the German government's reform agenda and promote investment in Europe's biggest economy.
Development Minister Reem Alabali Radovan, who will accompany Klingbeil on his visit to Washington, called for an end to the war.
"The international community must not hesitate now: The world needs peace, stability and an end to the violence," she said. "Every day counts."
UKRAINE MUST NOT BE FORGOTTEN
Germany and Ukraine agreed on defence cooperation plans during a visit to Berlin by Ukrainian President Volodymyr Zelenskiy and his defence minister on Tuesday.
"The fact that the world is now focused on the Middle East must not lead to Ukraine being forgotten," Klingbeil said. "It continues its courageous fight for freedom and democracy."
He added that he and his Norwegian counterpart, Jens Stoltenberg, have invited the largest donor countries to a meeting in Washington to discuss how to maintain financial support for Ukraine.
Germany is Europe's largest provider of military aid to Kyiv. It has delivered about 55 billion euros ($64 billion) since Russia's invasion of Ukraine in 2022 and has set aside 11.5 billion euros in the current budget.
(Reporting by Maria Martinez; Editing by Susan Fenton)
Finance Minister Lars Klingbeil stated that the economic situation remains extremely fragile and energy prices will likely stay high due to the ongoing conflict.
Germany is working to promote economic reforms, encourage investment, and coordinate international measures to stabilize markets and support impacted businesses.
Germany has delivered about 55 billion euros in aid to Ukraine since 2022 and allocated 11.5 billion euros in the current budget.
Germany aims to discuss economic stabilization, promote reforms, and maintain financial support for Ukraine with other finance ministers and organizations.
Explore more articles in the Finance category
