Trade Equilibrium in the 21st Century

The Stability and Growth Act of 1967 stipulates "external balance" as a state objective without defining it precisely. 55 years later, the question arises as to how this goal should be reinterpreted in view of the looming climate catastrophe and the turning point in security policy. What seems clear is that foreign trade equilibrium had not previously been understood in any meaningful way as a balancing of exports and imports, but that balance of payments equilibrium was more of a secondary condition of economic policy. In purely practical terms, the goal was often to promote foreign trade. In doing so, environmental economic (especially climate policy) and security policy externalities were often not taken into account, which may have led to Germany's excessive openness to trade. The pursuit of climate policy and security policy goals is best achieved by wisely exploiting – not negating – the benefits of the international division of labour.