Germany's finance ministry leaves the door open to pause debt brake to address Iran war impact.

The German Ministry of Finance has stated that, as Germany prepares to deal with the impact of a potential war with Iran, they are willing to consider temporarily suspending debt restrictions as an emergency measure. The conservative camp led by Chancellor Merkel and her Christian Democratic Union (CDU) had previously been staunchly against lifting the debt brake option specified in the constitution. However, the Finance Ministry led by Social Democrat Olaf Scholz has indicated that they do not rule out the possibility of a temporary suspension - this could serve as a measure to counter the economic impact of a disruption in the Middle East oil supply on the German economy. According to sources familiar with the matter, officials within the Finance Ministry are weighing various options to raise funds for crisis response measures to expand the budget, including exempting the debt brake based on emergency provisions. A spokesperson for the Finance Ministry stated on Monday in Berlin to reporters: "The federal government will continue to analyze the economic impact of a potential war with Iran and consider necessary measures. Currently, such decisions are not yet finalized. But a forward-looking and vigilant approach is still necessary."