Germany is chronically overproducing and underconsuming , thereby creating pockets of debt and instability elsewhere , in particular , in the US and UK , and the eurozone periphery . It has just announced record - breaking surpluses in trade , and its current account is now so large that last year it exceeded even that of China . The more Germany 's current account balance grows , the more unstable it makes the global economy . In a balanced system, countries typically export the goods they specialize in, using their earnings to buy things they can’t get at home. With President Donald Trump now seen as a potential threat to the eurozone , " Germany ’s ability to effectively operate a free market within the dysfunctional , but relatively stable EU is coming to an end " , warns research firm Gavekal .
Germany is chronically overproducing and underconsuming , thereby creating pockets of debt and instability elsewhere , in particular , in the US and UK , and the eurozone periphery . It has just announced record - breaking surpluses in trade , and its current account is now so large that last year it exceeded even that of China . The more Germany 's current account balance grows , the more unstable it makes the global economy . With President Donald Trump now seen as a potential threat to the eurozone , " Germany ’s ability to effectively operate a free market within the dysfunctional , but relatively stable EU is coming to an end " , warns research firm Gavekal .