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Record exports despite hurdles

Rolf Wenkel / sriFebruary 9, 2015

It is a miracle that German companies have once again managed to achieve record exports as politicians have been continuously throwing a spanner in their works, says DW's Rolf Wenkel.

https://p.dw.com/p/1EYfA
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Image: picture alliance

German exports have once again hit a record high. Despite numerous international crises, companies exported goods and services worth around 1.13 trillion euros ($1.28 trillion), 3.7 percent more than in 2013. The country's trade surplus in 2014, amounting to 217 billion euros, was higher than ever before. And that figure is set to jump by as much as five percent in 2015, estimates the German trade association BGA.

And we can also predict that these export numbers will reignite the criticism that Germany's massive trade surpluses are to blame for economic problems faced by the rest of Europe. It is not only US economists and the International Monetary Fund (IMF) who criticize Germany's export machine, but also occasionally the French and the Italians who do not seem to be in any kind of hurry to reform their economies.

Blaming Germany's surplus for other countries' problems is, however, absurd as German companies cannot be ordered to become less innovative or to pay higher wages to their workers. Every country remains free to make its economy competitive in the international market place, although it is now not as easy as it used to be when national currencies such as the Greek drachma, the Italian lira or the French franc were in use. Then, they were able to depreciate their currencies and muddle along without facing huge pressure to undertake painful, but much needed reforms.

Porträt - Rolf Wenkel
DW's Rolf WenkelImage: DW

But now, a shared common currency precludes a nation-state from devaluing the currency by itself. This, in turn, leaves just one option to ensure economic growth and prosperity: structural reforms. Nevertheless, many of these reforms, particularly those impacting the labor market, are unpopular and politically difficult to implement. It is rather much easier to blame the Germans and their export engine for Europe's misery.

I can, however, reassure European leaders their colleagues in Berlin are going to make sure that this German export success does not happen again. The country's politicians are really making an effort to succeed in that with the help of their policies.

While the minister of transport wants to press foreigners to pay a toll for driving on Germany's motorways, the government has given away about 160 billion euros to pensioners. At the same time, there is a labor minister determined about the implementation of a minimum wage, and a finance minister who is obsessed about balancing the budget, although there is an immense need for investment in public infrastructure across the country – from schools and universities to physical infrastructure such as roads.

Furthermore, the government has so far failed to make any advancement in terms of improving the access of citizens and companies to broadband technologies. And the list goes on and on.

So it's a miracle that German exporters have once again achieved a record. Because enough hurdles were thrown in their way by politicians to prevent such successes. One can only hope that the companies would not stumble in the current year.