Video
Why should Germany reduce its current-account surplus?
Bruegel scholar Zsolt Darvas explains the pressure on Germany to lift internal demand on the day that the European Commission will present its report on EU imbalances. He explains how Germany's current account surplus is the largest in the world. Reducing this imbalance by boosting domestic demand requires Berlin to take measures that will increase both public and private investment. This will increase overall demand in the euro area itself, and avoid deflation in the periphery.
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