France, Italy, Germany Count Losses Amid Oil Price Surge from Iran Crisis

Potential losses to the French economy due to the crisis caused by the attack by the United States and Israel on Iran are estimated at four to six billion euros, French Minister of Economy and Finance Roland Lescure said on RTL radio station.

Photo: commons.wikimedia.org by Steven Lek, https://creativecommons.org/licenses/by-sa/4.0/

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But this is not certain, the minister clarified that this estimate range is preliminary and broad. He also added that the French government is considering measures to reduce the negative impact of the conflict on the republic's economy, TASS reports. What exactly these measures consist of, Monsieur Lescure did not specify.

A similar assessment was also contained in a letter that Prime Minister Sébastien Lecornu sent to members of the government. Excerpts from it were published by the newspaper Le Monde. Lecornu demanded that ministers ensure additional savings of six billion euros, of which two billion would come through social insurance.

Italy Warns of Rising Energy Costs

The consequences of the conflict in the Middle East have already negatively affected the Italian economy, according to a statement by the research center of the industrialists' association Confindustria.

The analysis of the "current economic situation” states that rising energy prices will lead to a decline in consumption and purchasing power, as well as a slowdown in production rates.

According to experts' calculations, if the conflict in Iran is resolved by June, with an average oil price of $110 per barrel and a rapid recovery of supplies, Italian companies will pay seven billion euros more for energy than in 2025.

If the conflict drags on until the end of the year with oil at $140 per barrel, energy costs will be 21 billion euros higher.

The report emphasizes that this is unbearable for companies and remains the main problem of the Italian economic system.

Germany Prepares for Energy Risks

Meanwhile, in Germany, Chancellor Friedrich Merz recently announced plans to convene the National Security Council in the near future to discuss the energy crisis. He noted that the government's goal is to ensure stable supplies of diesel fuel, gasoline, and aviation kerosene.

Apparently, for more than a month and a half there had been no need for such discussions. At least, there was no reason to convene the National Security Council. But now there is.

Of course, because according to the chancellor, the situation is tense. At the same time, Merz assured that supplies are secured, and appropriate measures have been prepared in case of escalation.

The chancellor also assured that he intends to use all available tools, emphasizing that energy security is a top priority for Germany.

Earlier, Economy Minister Katherina Reiche announced countermeasures in case of a shortage of aviation fuel. At the same time, she assured that there are no grounds for panic. Although such assurances from authorities often provoke panic.

Fuel Prices Trigger Policy Tensions

Due to the conflict around Iran, rising fuel prices have led to disagreements within the German government. The ruling coalition announced plans to limit, for two months-from May 1 to June 30-the energy tax rate on diesel fuel and gasoline, reducing it by about 17 cents per liter.

As Labor Minister Bärbel Bas noted, the total volume of fuel tax relief for consumers and businesses will amount to approximately 1.6 billion euros.

Meanwhile, motorists across Europe have once again begun traveling to neighboring countries in search of cheaper fuel.

In March, for example, Germans began to visit gas stations in Poland more often. And Poles went to Slovakia. At least, this was complained about by the prime minister of that country, Robert Fico.