Wolff, Guntram.
In the sixth year of the crisis of the euro area, it is time to review whether adjustment to external imbalances in the euro area is working. Current accounts have dramatically adjusted in a number of countries of the euro area as the graph below shows. The one country showing virtually no adjustment is Germany and I will revert below to it. Is the dramatic adjustment in current account deficits a sign of success of the export sector or merely a reflection of a dramatic collapse in domestic demand due to the private sector deleveraging and the start of fiscal consolidation?