February 20, 2017
by Marcel Fratzscher
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Germany’s savings madness

This text was also published in German in  ZEIT ONLINE on February 17,  as part of the op-ed column “Fratzschers Verteilungsfragen“.

Germany is generating substantial export surpluses – but the profits are being squandered abroad. The solution? Investing in Germany.

Since the year 2000, every German has lost an average of €7,500 euros in savings abroad.

How could that be? Didn’t our country just post a record surplus, exporting significantly more to its foreign partners than it is importing? Yes,

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February 13, 2017
by Marcel Fratzscher
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Curse of the Trade Surplus

This text was published in Handelsblatt Global Edition on February 13, 2017.

The criticism of Germany’s trade surpluses by the U.S. government has caused collective indignation here at home. Much of the criticism is not fair. Accusations that Germany manipulates the euro and misuses the European Union for its own interests are unwarranted. But there is also a kernel of truth that our European neighbors have been voicing for a long time: Germany’s trade surplus is tantamount to protectionism. That’s

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February 3, 2017
by Marcel Fratzscher
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No envy, please!

This text was also published in German in  ZEIT ONLINE on February 3,  as part of the op-ed column “Fratzschers Verteilungsfragen“.

“Time for fairness“ is the motto of the new candidate for Chancellor of the German Social Democrats, Martin Schulz, in his campaign against Angela Merkel. The slogan is bound to strike a chord in a country where 70 percent of the people feel that inequality is too high. But the issue of fairness should not be the one at

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June 27, 2016
by Marcel Fratzscher
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Making the Eurozone more resilient: What is needed now and what can wait?

This article was first published on VOXEU.org on June 25, 2016. 

Britain voted to leave the EU. This is terrible news for the UK, but it is also bad news for the Eurozone. Brexit opens the door to all sorts of shocks, and dangerous political snowball effects. Now is the time to shore up the Eurozone’s resiliency. The situation is not yet dire, but prompt action is needed. This VoxEU column – which is signed by a wide range of

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June 24, 2016
by Marcel Fratzscher
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Statement on the result of the Brexit referendum

The Brexit decision is a catastrophe for all Europeans. The economic costs will be enormous for all of Europe. Britain could slide back into recession. We at DIW Belin expect a 0.5 percentage points lower economic growth in Germany in 2017 as a result of lower German exports to the UK alone. The risk is highest for countries such as Italy, which are vulnerable and could slide even deeper into the financial crisis.
I expect major volatility in financial markets

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June 8, 2016
by Marcel Fratzscher
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Germany’s Strange Turn Against Trade

This article was first published on Project Syndicate on June 6, 2016.

The window of opportunity to complete the Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union is closing quickly. National elections will be held this year and next in the US, France, and Germany, and the campaigns will play out in an environment that is increasingly hostile to international agreements in any form. The biggest risk might come from the least likely source:

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June 2, 2016
by Marcel Fratzscher
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Statement on the Decision of ECB’s Governing Council 06/02/2016

The ECB has signaled that low inflation is likely to persist even longer than previously feared. The new projections by the ECB have increased the probability of an extension of QE beyond March 2017. The ECB is putting great hopes into its new liquidity program for banks in order to improve credit to the private sector, strengthen the economy and thereby raise the inflation rate.

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May 11, 2016
by Marcel Fratzscher
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Judy Asks: Can Debt Relief Save the Euro?

A selection of experts answer a new question from Judy Dempsey on the foreign and security policy challenges shaping Europe’s role in the world.

The question is not whether debt relief is needed, but how and when it will take place.

Almost one year after the Greek debt drama, which almost ended with Greece’s exit from the eurozone, the conflict between the Greek government and its European partners is again heating up. The bad news is that progress on Greek

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April 21, 2016
by Marcel Fratzscher
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Statement on the Decision of ECB’s Governing Council 04/21/2016

“With its decision, the ECB has signalled the continuation of its expansionary monetary policy. The ECB policy of low interest rates will not end soon. I expect interest rates to remain close to zero for another 3 to 4 years.

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March 10, 2016
by Marcel Fratzscher
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Statement on the Decision of ECB’s Governing Council 03/10/2016

With its decision the ECB is sending a strong signal that it is strongly determined to use all of its instruments to pursue its mandate of price stability. The further expansion is massive and surprising.The decision underlines the ECB’s concerns over a weakening European economy and the banking system. The ECB had no other choice than to further ease its monetary policy stance given the continued risk of deflation and the weaker outlook for the European economy.

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