The European Commission (EC) decided Wednesday to investigate Germany’s current account surplus; as of September, Germany’s current account surplus, at €19.7 billion, has surpassed that of China. “A high surplus does not necessarily mean that there is an imbalance,” said EC President Jose Manuel Barroso. “We do need to examine this further and understand whether a high surplus in Germany is something affecting the functioning of the European economy as a whole.” Even should the Commission determine that Germany’s account surplus is an imbalance, it can only offer recommendations. The EC currently has no enforcement mechanisms for correcting a current account surplus.
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