EconPol Policy Reports

 Cover EconPol Policy Report 02 2017

The German current account surplus: where does it come from, is it harmful and should Germany do something about it?

Gabriel Felbermayr, Clemens Fuest and Timo Wollmershäuser

In the international economic policy debate Germany is criticized heavily for its current account surplus. This paper describes the factors that have led to the surplus and discusses the policy implications. The current account surplus is mainly a result of higher savings, driven by an ageing population. The claim that the German surplus causes economic damage either in Germany or in other countries is not well founded. But Germany faces growing political pressures related to the threat of protectionism, the risk that a growing creditor position may lead to political backlash, and the fact that European Macroeconomic Imbalances Procedures imply that current account surpluses should not exceed six percent of GDP. To reduce the surplus Germany should focus on a corporate tax reform to boost private investment.

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Cover EconPol Policy Report 1/2017

The Future of Eurozone Fiscal Governance

Anne-Laure Delatte, Clemens Fuest, Daniel Gros, Friedrich Heinemann, Martin Kocher and Roberto Tamborini

EconPol Europe’s first policy report discusses various options for reforming fiscal governance in the Eurozone. The authors focus on two possible reform approaches referred to as the ‘Maastricht model’ and the ‘US model’. They argue that certain elements of the two approaches could be combined to achieve a more resilient and economically successful Eurozone.

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