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2018-05-07

Germany’s finance minister’s obsession with surpluses will damage EU neighbours

Germany has been running current account surpluses of around 8 per cent for the past couple of years.

Mr Scholz’s ambition is to push the budget into a surplus of 1 per cent of GDP or higher. Such a surplus would, over time, eradicate all public debt. 

At that point Germany will have reached ordo-liberal utopia: it will have become like Nicolae Ceausescu’s Romania, which boasted a surplus of $9bn in 1989, just before the dictator was overthrown.


Wolfgang Münchau FT 6 May 2018


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