Germany must reduce its current-account surplus – by Jan Behringer, Till van Treeck and Achim Truger

The German economy has been running persistently high current-account surpluses for more than 15 years. Over the last decade, the surplus was between 6 and 9 per cent of gross domestic product, mainly because Germany exported much more than it imported. This is a drag on other countries’ exports and employment and can also lead to financial imbalances.

A large majority of economists outside Germany thus see the surpluses as a serious threat to macroeconomic stability. The European Commission, the International Monetary Fund and the United States government have repeatedly called for a rebalancing. So far, however, none of the various German governments in power since the early 2000s has seen the need to take action.

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