According to the Wall Street Journal,"the trade surpluses reflect the strong competitiveness of the German economy and the international demand for quality products from Germany," the German Economics Ministry said in a statement Thursday, responding to a report from the U.S. Treasury published Wednesday that bluntly criticized Germany's economic policies and blamed the euro-zone powerhouse for dragging down its neighbors and the rest of the global economy.
"The U.S. government should critically analyze its own economic situation," said Michael Meister, a senior lawmaker and close ally of Chancellor Angela Merkel, criticizing the high debt level in the U.S., which "doesn't just unsettle [the U.S.], but has negative effects on the global economy."
"The German economy is competitive, with record-high employment—so it's really not understandable why we're being blamed for this success," Mr. Meister added.
While the U.S. has previously tried to persuade Germany—as the euro zone's major surplus country—to do more to increase spending by consumers and businesses, the tone sharpened in the latest Treasury report, which put Germany on a par with the U.S.'s traditional target, China. European officials have also nudged Germany to open its services sector and increase competition to boost growth and labor participation.
The Economics Ministry said the country's domestic economy is the main pillar of its growth, noting that both investment in Germany and consumer demand are increasing.
It also said the U.S. criticisms are at odds with the International Monetary Fund's stance: "Furthermore, the IMF also doesn't see economic policy distortions as the basis for Germany's trade surplus."
