Germany’s current-account surplus is a problem

WHAT awkward timing. On February 9th Germany reported the world’s largest current-account surplus, of about €270bn (almost $300bn), beating even China’s. Meanwhile, the country with the world’s biggest deficit remains America, which under its new president, Donald Trump, is browbeating friend and foe alike in the name of putting “America first”. Mr Trump’s economic adviser, Peter Navarro, has even accused Germany of currency manipulation. By his logic, Germany “exploits” America and others because it uses the euro, which is weaker today than the old Deutschmark would be, making German cars, machines and other exports more competitive.

Coming just weeks after Mr Trump casually threatened to slap a 35% tariff on imported BMWs, such talk has Germans’ full attention. His verbal assaults on the rules-based trading order, along with his disdain for NATO and the European Union, strike at the heart of post-war Germany’s identity and national interest, which is to be embedded in Europe and the West as a peaceful mercantile nation. But if Mr Trump thinks the angst he is causing gives him bargaining power over Germany, he is naive.

His...