Due to the ongoing instability surrounding the Iran crisis, SPD Parliamentary Group Leader Matthias Miersch has suggested the necessity of accumulating additional state debt. Speaking to the “Neue Osnabrücker Zeitung”, Miersch stated that the government’s primary task is to prevent an economic collapse. While emphasizing that he does not wish to paint a picture of disaster, he argued that all options must be considered in the worst-case scenario, including declaring a budget emergency and accepting potentially new loans.
This debate over budget excess has been challenging for the current coalition government, which recently faced friction over the matter. Miersch criticized those who categorically refuse necessary precautions, noting that doing so implies an ignorance of the profound disruptions that the continuation of the Iran crisis could bring. He pointed out that potential actions by figures like Donald Trump or Benjamin Netanyahu are unpredictable. According to Miersch, a blockade in the Strait of Hormuz would affect far more than just the oil market; it would threaten to disrupt entire, large-scale supply chains, leading to massive economic fallout.
Given this dire outlook, Miersch called for a collective readiness to maintain social cohesion, even if further financial relief packages are necessary.
When discussing the preferred method for providing relief, Miersch suggests targeted, tax-liable direct payments, drawing a contrast between such measures and broader approaches like the gasoline rebate. He argued that time is not an issue for implementing selective aid, and that such tax-liable payments-modeled after programs used during the COVID-19 pandemic-are more socially balanced because higher-income earners would be required to repay a greater percentage of the assistance through taxes.