Letzte Aktualisierung: 02. Mai 2019
The importance of the German economy for Europe
vbw study: Europe benefits from a strong German economy. Demand from Germany provides 5 million jobs in the other EU states.
Germany is criticized for its high current account surpluses: the export successes of the German economy were at the expense of the other EU states. Our study shows that this criticism is completely unjustified. On the contrary, a strong German economy creates added value and employment in Europe.
Demand from Germany provides five million jobs in the EU
Germany is the most important or second most important export market for almost all EU states. German imports generate added value of 255 billion euros and five million jobs in the other EU countries. Alone 181 billion euros or 3.3 million jobs account for the demand of German industry for intermediate and capital goods.
Germany as a growth driver
A more in-depth analysis shows that a dynamic German economy does not slow down the development in the partner countries, but supports the economy there. In a scenario in which the German economy stagnated until 2021, the gross domestic product (GDP) of the other EU states in 2021 is 26 billion euros lower than in the base forecast.
Germany's competitiveness helps EU partners
Due to the high international competitiveness of German industry, companies from other countries are by no means ousted. A scenario calculation shows that a worsened competitiveness of Germany leads to growth losses also in other EU countries. A temporary increase in unit labor costs in Germany would mean that economic output in the entire EU would be 44 billion euros lower by 2025: by 36 billion euros in Germany and by 8 billion euros in the other EU states.