José Manuel Barroso has launched an inquiry into whether Germany’s large current account surplus is harming the European economy, drawing Brussels into a heated debate on Berlin’s role in global economic health.
The European Commission president took pains to emphasise yesterday that the commission’s “in-depth review”, was part of its annual examination of eurozone economies and was not intended to criticise the competitiveness of German industry or its broader economy.
But he said there were parts of the German economy, particularly the service sector, that should be liberalised, and other EU officials called on Berlin to increase infrastructure investment to stimulate demand.
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