The Hypocrisy Of Germany’s Indignation Over Foreign Indebtedness

by heavilyarmedsovietspacemonkey

Just yesterday I’ve come across a text passage worth reading in an op-ed by Tomas Konicz in the current issue of the Konkret magazine, which perfectly manages to briefly and succinctly convey the hypocrisy of the German indignation over the indebtedness of other European countries:

>>Berlin’s struggle for the welfare of the German auto industry does also result from its strategic position. The construction of vehicles forms actually the backbone of the aggressive German economic strategy, which is aiming at the creation of an export surplus as big as possible, after all. This successfully practised neo-mercantilism by Berlin has reached extreme dimensions by now: Last year the Federal Republic of Germany would have been hit by a recession, if it hadn’t been for the positive cyclical effects of the current German account surplus (and the consequent foreign indebtedness). To put it plainly, that does mean that Germany’s economy is living on credit as well, only that the necessary dynamics of indebtedness are being exported abroad by the trade surplus – this, by the way, makes the here in this country highly cherished indignation over the exorbitant indebtedness of foreign states entirely absurd. The auto industry plays a key role at this: In 2012 the vehicle manufacturers generated 17,3 percent of the German exports, but in the same time they’re responsible for roughly two-thirds of the German trade surplus. [By  preventing more strict EU directives for the CO₂ emission of cars,] chancellor Merkel is, therefore, defending the foundations of the aggressive mercantilist “business model”, on which the Deutschland AG is based.<<