Jens Südekum, the well‑known economist who advises SPD finance minister Lars Klingbeil, cautions that the flare‑up in Iran could have serious repercussions for Germany’s economy and inflation. Speaking to the broadcaster ntv, he warned that energy prices could gradually “eat into the whole economy” and that, with a lag, food prices might also rise. He said the situation “poses a real danger of higher inflation and a drag on economic growth”.
Südekum acknowledges that the duration and potential deepening of the crisis are unpredictable. Nevertheless, he praised the latest fuel‑price package that the government has just passed, calling it a suitable response. If the crisis persists, he suggested looking at models such as Luxembourg’s, where price increases are regulated by the state to prevent the energy sector from expanding margins. He declined to speculate on additional measures should the crisis worsen.
Highlighting the limits of state intervention, he noted that German fuel prices have already risen by around 20 percent. “Those recent measures are appropriate for this degree of price increase” he said. “We cannot use taxpayer money to cushion every small shock; the state is not an all‑risk insurer”.