Merkel: "EU trade balance completely distorted by this Italian ragazzo at the ECB"

Draghi indignant

Merkel said the euro’s exchange rate does contribute to Germany’s trade surplus, though that’s because European Central Bank’s needs to set monetary policy that responds to disparate economic performances across 19 nations. The euro reached a 14-year low of $1.0388 in December and closed at $1.0616 on Friday.

“If we still had the deutsche mark, it would be valued differently than the euro is now,” Merkel said in response to a question about Germany’s current-account surplus at the Munich Security Conference on Saturday. “But that’s an independent monetary policy over which I as chancellor have zero influence.”

EU trade balances in one picture

Picture via Jesse's

Entschuldigung, but there is nothing Mutti can do about it.