Germany endangers eurozone stability

Published on 18 May 2015 at 21:03

British paper The Daily Telegraph argues that not only is Germany's current account surplus out of control, but for the fifth year in succession the European Commission has failed to impose fines on Germany for endangering eurozone stability and breaching the EU's Macroeconomic Imbalance Procedure. It states that "cynics might justifiably conclude that big countries play by their own rules in Europe, and that Germany can defy all rules".

The article goes on to refer to the IMF warning to Germany last year that its budget surplus is destructive for European monetary union as a whole, is not in Germany's economic interest, and makes it harder for EMU crisis states to claw their way out of trouble. It makes the point that the surplus

is a chronic structural abuse, rendering monetary union unworkable over time, and is surely more dangerous for eurozone unity than anything going on in Greece.

Receive the best of European journalism straight to your inbox every Thursday
Tags

Was this article useful? If so we are delighted!

It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans.

Discover our subscription offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic