US blames Germany for growth imbalances

In a report presented to the US Congress on 9 April 2014, the US Treasury Department warned Europe against relying too much on exports for growth, and urged officials to make more use of fiscal policy, saying stronger demand was essential.

The report singled out Germany, Europe’s biggest economy, saying 'stronger demand growth in Germany is absolutely essential, as it has been persistently weak.'

The German economic model had already been previously criticised by several stakeholders, including the European Commission, who called for more action to act against trade imbalances.

• Primary Source

Reuters, 09.04.15: U.S. warns Europe against relying too much on exports uk.reuters.com/article/2015/04/09/uk-usa-currency-idUKKBN0N029R20150409

United States: US Treasury Department: Report to Congress on International Economic and Exchange Rate Policies [April 2015] http://www.treasury.gov/resource-center/international/exchange-rate-policies/Documents/Report%20to%20Congress%20on%20International%20Economic%20and%20Exchange%20Rate%20Policies%2004092015.pdf

ESO: Background information: Barroso urges Germany to act on euro imbalances http://www.europeansources.info/record/barroso-urges-germany-to-act-on-euro-imbalances/

---