Germany in boom but will study making changes

Germany is about to throw its economic boom open to debate.

Acknowledging a “particularly intense” discussion in recent years on matters such as the country’s twin surpluses, the Bundesbank will host a clutch of policymakers and economists in Frankfurt today, including International Monetary Fund Managing Director Christine Lagarde.

While robust growth and record-low unemployment have been a boon for Europe’s largest economy and the region, it has also drawn persistent criticism for being reticent to spend.

One of the conference’s more controversial topics might be Germany’s current-account surplus, a lightning rod for criticism — including from the Trump administration — that it’s a sign of trade distortion. Lagarde’s IMF has urged the nation to reduce its external imbalances.

German politicians have balked at the suggestion that maybe the country should export less or import more. Chancellor Angela Merkel has noted the criticism, and said last year that her government’s plans to invest more in infrastructure might help.

Another German policy to draw accusations of miserliness is the insistence on a budget surplus — to the tune of 1.2 percent of gross domestic product last year, the fourth consecutive excess and the biggest since reunification in 1990.

The issue of what to do with the cash has been hotly contested. The government wants to reduce its debt burden.

If Germans are to spend more, they probably need to be paid more. Wage growth has been slow to pick up.

That may be on the cusp of changing. Germany’s largest union IG Metall is in talks on behalf of 3.9 million metalworkers and engineers for 6 percent more pay, plus an option to receive subsidies for reduced working hours to take care of family members.