Merz Cautions Prolonged Economic Impact from Iran War

(MENAFN) German Chancellor Friedrich Merz has cautioned that the ongoing war involving Iran will have lasting repercussions for the global economy, with Germany preparing for what he described as a prolonged and significant economic burden, according to reports.

Speaking at a press conference in Berlin, Merz said the effects of the conflict would persist well beyond its conclusion.

“We will feel the consequences of this war for a long time to come, even after it is over,” he said.

He added that Germany should expect sustained pressure on its economy, which would likely translate into financial strain for households as well.

“Consequently, we are also preparing for a significant burden on the German economy for an extended period — and thus a considerable burden on private households as well.”

Merz also commented on recent diplomatic developments, expressing regret over the collapse of US–Iran negotiations held in Islamabad over the weekend. However, he noted that he was not surprised by the outcome.

“I wasn’t surprised by the decision to break off the talks in Islamabad. From the very beginning, I didn’t get the impression that they were really well prepared,” he told reporters, emphasizing that a diplomatic resolution would likely require extended efforts.

According to reports, Merz said Germany remains engaged in discussions with multiple parties involved in the conflict, including the United States and Israel, as well as other stakeholders.

“We are talking with the US administration, we are talking with the parties to the conflict, and we are talking with Israel,” he said. “This will remain a long-term process,” he stressed.

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