European powers and bodies warn of economic collapse as the war on Iran nears one-month mark. Published On 26 Mar 202626 Mar 2026Fears of economic strain are growing across Europe as the United States-Israel war on Iran nears the one-month mark.On Thursday, German Defence Minister Boris Pistorius described the conflict as an economic “catastrophe”, while the United Kingdom’s economic growth prospects this year received a sharp downgrade.Recommended Stories list of 3 itemsend of listSpeaking at a meeting with Australian Defence Minister Richard Marles on Thursday, Pistorius said Germany was “ready to secure any peace”.“If it comes to a point where we have a ceasefire, we will discuss every kind of operation to secure the peace,” he said. “To make it crystal clear, this war is a catastrophe for the world’s economies. The impact is absolutely evident already now.”The Organisation for Economic Co-operation and Development (OECD) on Thursday warned that the global economy, which was on a route towards growth, is now veering from that path.The Paris-based international body cut its 2026 forecast for British economic growth by half a percentage point to 0.7 percent, compared with a 0.4 percentage point downgrade for the eurozone and a 0.3 percentage point upgrade for the US.“Planned fiscal tightening and higher energy prices are anticipated to keep growth subdued in the United Kingdom, though the impact will be attenuated by lower policy rates next year,” the OECD said in its report.‘It’s not our war,’ says GermanyIn Australia, Pistorius also addressed reporters at Parliament House in Canberra, saying the US had not consulted Germany before it, along with Israel, waged a joint war on Iran on February 28. Advertisement “Nobody asked us before. It’s not our war, and therefore we don’t want to get sucked into that war,” he said. “There is …
