Don’t blame the ECB:A stronger euro is no panacea for Germany’s surplus

The blame gameGerman Chancellor, Angela Merkel, has echoed the sentiments of her finance minister,Wolfgang Sch?uble, that for Germany the “euro is too weak” and that it is “because ofECB policy”. The statements may be an attempt to deflect criticism from the USadministration about Germany’s trade surplus and perhaps to win favour amongstmembers of the electorate increasingly frustrated about earning little or no interest on theirhigh savings. But the fact is there are bigger drivers of Germany’s 9% of GDP currentaccount surplus than a weak euro