While waiting for growth data that will be published today, Germany's economy is covering its bases in the midst of the deep crisis that?s shaking up the euro zone.
At year end its trade deficit will post a surplus of 200 billion euros, which would be the biggest positive imbalance worldwide for the year. The figure highlights the competitive strength of German companies, which have successfully avoided most of the mistakes causing widespread low sales across the euro zone, but also reveals the weakness of demand within the country.
The European Commission and other international organizations have given their warning signals, because Germany could close the fiscal year with a trade surplus higher than 6%, a figure that scares experts because it could threaten the stability of the European economy.
It's not bad when things are going well for a country, nor if it can make the most the adversity that has existed in Europe for years. But Germany can't conceive of the situation as a series of opportunities to benefit with respect to weaker economies like Spain's. In addition to requiring Spain to carry out reforms in order to meet its deficit goal, Germany ought to help Spain find ways to pay the deficit down.
Whoever believes that should recall the deflationary policy that Germany used between 1930 and 1932. It was the seed of the Great Depression and unbearable unemployment levels that in the end caused the fall of the nation's first ever democracy. Germany needs to jump start domestic consumption and start importing more goods in order to rebalance the trade deficit and encourage growth in other European countries.