Harold James in Foreign Policy
On February 2, 2017, Foreign Policy published an op-ed by Transatlantic Academy Senior Fellow Harold James, entitled "Trump’s Currency War Against Germany Could Destroy the EU."
"It’s just over a week after Donald Trump’s inauguration, and his administration has already indicated that it is preparing for global economic war," James writes. "The currency war the White House has in mind is clearly aimed not just against China — which has long been suspected of 'cheating' in order to win the globalization game — but also Germany: On Tuesday, Peter Navarro, the head of the new National Trade Council, claimed that Germany is using its currency to 'exploit' both its neighbors and the United States. The White House evidently thinks of the European Union, and the monetary union that established the euro currency, as essentially a mechanism to protect German interests and extend German power — as an instrument of Germany, as Trump himself put it. This fear of Germany is both an outlandish expression of paranoia and an idea with a long pedigree among some establishment economists and policymakers. Nobody doubts that the White House has tools at its disposal to strong-arm Germany into changing its economic policy – including its commitment to the euro, which currently binds the European Union together. Indeed, the Trump administration already seems to be doing just that."
The full article can be read here.