Germany forecasts a drop in federal tax revenue of €52 billion by 2030, a deficit traced to the U.S. president’s war in Iran.

The deficit eclipses October forecasts, signaling a widening fiscal gap that could strain public services and force austerity measures.

Investors will watch German bond yields closely, as the shortfall may prompt higher borrowing costs and pressure on the Euro.

Policymakers must decide whether to increase taxes, cut spending, or seek external aid to fill the €52 billion hole.