Germany’s finance minister has blamed US President Donald Trump’s handling of the war involving Iran for worsening economic conditions in Germany, as officials sharply lowered the country’s expected tax revenue projections over the coming years.
Lars Klingbeil said in Berlin that the conflict had triggered a global energy shock that was weighing heavily on Europe’s largest economy and slowing what had been modest signs of recovery.
German authorities now expect combined federal, state and municipal tax revenues between 2026 and 2030 to fall by around €87.5 billion compared with earlier projections.
Klingbeil said the downturn reflected the economic damage caused by the ongoing conflict and rising energy prices.
“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.
He also linked the weaker outlook to Russia’s war in Ukraine and continuing tariff disputes, warning that Germany faced “major uncertainties” requiring continued crisis management.
According to revised estimates, projected tax revenues for 2027 alone are expected to be about €10.1 billion lower than forecast in October.
Germany’s coalition government has struggled for years with stagnant growth, elevated energy costs and weakening export demand.
Klingbeil said Berlin was focusing on reforms and investment plans aimed at reducing dependence on external shocks and strengthening economic resilience.
The remarks add to growing tensions between Berlin and Washington over the conflict with Iran and broader transatlantic relations under Trump’s presidency.
German Chancellor Friedrich Merz recently criticized the US approach to negotiations with Tehran, saying the Americans had “no strategy” and describing Iran’s leadership as having “humiliated” Washington during failed diplomatic efforts.
Trump responded publicly by accusing Merz of misunderstanding the Iran issue and later suggested Germany should focus more on domestic problems.
Days later, the Pentagon announced plans to withdraw 5,000 US troops from Germany, a move German officials said had been foreseeable.
The war has also intensified concerns over global energy supplies, with hostilities affecting shipping through the Strait of Hormuz, a key route for global oil and liquefied natural gas shipments.