Sylvester Eijffinger's picture
Affiliation: 
CentER, Tilburg University
Credentials: 
Professor of Financial Economics
President of Tilburg University Society

Voting history

German current account surpluses

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Question 2: Do you agree that the German government should increase public spending given its persistently large current account surplus and given that it is part of the Eurozone?

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Answer:
Strongly agree
Confidence level:
Extremely confident
Comment:
The German government should increase public spending in terms of investment in the physical infrastructure (e.g. bridges, roads, railways, etc.) and in the human infrastructure (e.g. education, research, etc.). Other surplus countries, like the Netherlands, should also increase investments.

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Question 1: Do you agree that German current account surpluses are a threat to the Eurozone economy?

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Answer:
Strongly agree
Confidence level:
Extremely confident
Comment:
The German current account surpluses are indeed a threat to the Eurozone economy but German politicians will only agree with stimuluses when the Eurozone countries with deficits on the current account will pursue structural reforms in labour and product markets. Therefore, the Eurozone countries should improve their coordination of macroeconomic policies with stimuluses by the surplus countries, preferably investments in their infrastructure, and structural reforms by the deficit countries.

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