Germany has been achieving export surpluses year by year, with few exceptions, since the 1950s. Prior to the introduction of the euro there was a regularly recurring need for imbalances in foreign trade to be corrected through upward revaluation of the deutschmark. The introduction of the euro meant exchange-rate adjustments within the eurozone were no longer available as a corrective measure. Also, the German export industry is benefiting in trade outside the eurozone from the lack of serious pressure to revalue the euro upwards, a consequence of the substantial number of eurozone nations recording import surpluses.
Protected thus inside the eurozone from revaluation, Germany’s competitive position has been further enhanced since the late 1990s as a result of below-average wage increases relative to other eurozone countries, which in effect amounts to an internal devaluation. This in turn led to a rise in German export surpluses, which by 2012 were equivalent to about 6.5% of the German gross national product: in other words, over a mere three-year period Germany is forced to invest about 20% of its GNP overseas. German surpluses are matched by corresponding deficits in other eurozone countries. Currently, the German economy finds itself in an exceptional situation in Europe as a result of its highly developed international trade links. The openness of the economy (total of exports and imports as a proportion of GNP) in Germany, France, Spain and Italy was rated in 1995 at about 50%. But in 2008 the figure for Germany reached approx. 90%, against a rise to only 60% in the other countries…
Ein Beitrag von Gerhard Bosch, Geschäftsführender Direktor Institut Arbeit und Qualifikation Universität Duisburg-Essen