Surmounting the German Surplus
Germany’s substantial and persistent current-account surplus has divided European politicians and economic policymakers for years, because few can agree on its ultimate causes and proximate effects. But, for Europe’s sake – and Germany’s – these and other disputes will have to be resolved by the new German government that emerges from this month’s federal election.
PARIS – Germany’s large and persistent current-account surplus was scarcely mentioned in a recent electoral debate between Chancellor Angela Merkel and Martin Schulz of the Social Democratic Party. That may not have bothered Germans; but for many outside of Germany, it was deeply troubling, as Germany’s external surplus has been roiling political debate in many countries for several years.