Consequently, and in contrast to some other surplus countries, Germany’s current account surpluses were certainly not caused by policy interventions aimed at boosting exports. Instead, they resulted from market-driven adjustments to external pressure as well as overdue structural reforms. It is true that the restructuring process has fostered the emergence of current account surpluses by putting a strain on domestic consumption.
First, the rest of the euro area – or the rest of the European Union – should continue to support the adjustment process of euro area countries that had to address an unsustainable fiscal deficit or current account deficit – provided that there is adequate conditionality and monitoring.