Email of the day
Comment of the Day

August 26 2011

Commentary by David Fuller

Email of the day

More on the German economy:
"Here are some interesting statistics about Germany's trade surplus. From 2005-2009, Germany accumulated a trade surplus of Euro 825 billion. It is truly the industrial powerhouse of Europe.

"But the last sentence is true in a much more subtle fashion. The trade surplus with Portugal-Italy-Greece-Spain accounted for 28% of this trade surplus. In contrast, the UK contributed 14% while the US contributed 15%. The Eurozone as a whole, contributed 88%!

"The numbers add up to more than a 100% because during those 5 years, Germany ran a trade deficit with China adding up to 14% of the net trade surplus. It also ran a trade deficit with Japan adding up to 6% of net trade surplus.

"This gives you a sense of how intertwined Germany's welfare and the rest of the Eurozone is. If the Eurozone economy goes down the toilet, so does Germany's. That is why Germany's refusal to lead the way to assist the rest of the Eurozone is completely incomprehensible.

"It is tantamount to economic suicide (Wirtschaftlicher selbstmord)".

David Fuller's view Thanks for the informative data.

Therapeutic grumbling aside, I think most Germans realise this. That is why I believe the Rubicon in terms of fiscal union has been crossed. This should ensure that the euro survives.

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