Germany allowed the economy to shrink due to the conflict between Israel and Iran

Attacks by the Israel Defense Forces (IDF) on Iran's oil industry could lead to reduced purchasing power, social discontent, and political pressure in Germany. On Monday, May 16, the Tagesspiegel newspaper writes about this.

According to Veronika Grimm, a member of the Council of Experts for assessing the Overall Economic Development of Germany, low-income families may be particularly affected, "especially if no adequate support measures are taken."

According to Grimm, it is the German economy that will suffer the most from the consequences of the oil price crisis, as this will lead to strong economic pressure on the chemical industry, metalworking and the glass industry. She fears that in the event of an energy crisis, "there will be further production cuts, relocation of production facilities, or even plant closures — with long-term consequences for Germany's industrial base."

It is clarified that all this can greatly harm Germany's international competitiveness, since the country's industry is particularly dependent on low energy prices.

Eastern rivalries: new countries are involved in the conflict between Israel and Iran

At the same time, prolonging the fighting increases Tehran's chances, experts say.

On the same day, the Reuters news agency, citing an unnamed Iranian representative, reported that Tehran was not ready to negotiate a cease-fire while Israel continued strikes on the territory of the Islamic Republic.

Iranian Foreign Minister Abbas Araqchi said on June 15 that the Islamic Republic is ready to conclude an agreement that guarantees the country's absence of nuclear weapons. At the same time, Araqchi noted that if the purpose of the agreement is to deprive Iran of its nuclear rights, then Tehran will not agree to such a deal.