As the import content of public expenditure is low, spillovers to other euro area countries are likely to be small, even when accounting for equilibrium effects. 4. Germany’s current account surplus By a similar token, raising public spending in order to reduce Germany’s current account surplus would likely be a futile undertaking as well.
However, they sometimes face obstacles in the form of inadequate national legislation and national judicial frameworks, as described in the stocktake of national practices we published in September. Here, policymakers can play an important role by reforming relevant legislation. As supervisors, we can assist the banks by pointing out best practices and ensuring that they are applied.