In light of the energy crisis exacerbated by the Iran conflict, the EU Commission has proposed easing debt regulations to facilitate investments in the energy transition, potentially allowing these expenditures to fall under existing defense spending exemptions. However, Nagel cautioned against expecting immediate price relief, indicating that persistent uncertainties and altered supply chains may prolong elevated price levels. The Bundesbank has revised its economic forecasts downward, projecting a 0.5% growth in Germany’s GDP for the current year and 0.8% for the following year. An interview with Nagel will air on Deutschlandfunk on Sunday at 11:05 AM.