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Germany’s Current Account Surplus Does Not Harm Other Countries But Germany Is Nevertheless Breaking EU Rules and Should Try to Stimulate Private Investment by Reforming Corporate Taxation

Criticism of Germany’s current account surplus is overblown. The surplus is having no negative impact on other countries or on Germany itself, according to the results of a recent ifo study for the new research network EconPol Europe. Higher demand from Germany may help countries suffering from unemployment, but a lower surplus would boost interest rates due to lower capital outflows and would negatively impact countries with high debts as a result.
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EconPol Europe – the European Research Network – established by the ifo Institute and eight renowned partners

EconPol Europe – the European Network for Economic and Fiscal Policy Research built up by the ifo Institute – is the new expert voice in the discussion regarding the future shape of economic and fiscal policy in the European Union. On June 22, ifo President Clemens Fuest and the representatives of eight other renowned research institutes will meet in Brussels to sign the document establishing this major European research network.
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