Imbalances: Should the EU Intervene?

Imbalances are a recurring problem in the EU. Especially differences in trade balances dominate the debate. Germany, for instance, has been generating very high surpluses for years and meets serious criticism for this reason.

This briefing, written by Anna auf dem Brinke, research fellow at the Jacques Delors Institut – Berlin, examines whether imbalances pose a threat to the EU and what role the euro plays in this. It also asks whether politicians should redress differences in the balance of trade – and if so, whether that is up to national governments or the EU.