i need comment of this :ccording to many reports, current account deficits in some European nations have deteriorated significantly while surpluses have substantially increased in countries like Germany, Belgium, Finland, Austria and Luxembourg. A report issued by the European commission in 2012 shows that excess savings of the surplus countries financed deficits in the Euro-area periphery BUT the absence of adequate financial supervision resulted in credit driven boom and excessive investments in non-prodctive activities.If we compare the ” Which came first, the chicken or egg?” slide to the situation in Europe we find a disconnect because countries who have experienced overconsumption and savings reduction have also experienced a decline in their Capital inflows.To restore the balance in the EU:1. Germany needs to enhance domestic demand and promote economic activity. The increase in demand in Germany may spillover to other nations in Europe and improve the economic activity and exports in deficit countries.2. Use the savings and wealth of countries with a CA surplus to invest and restore the capital inflows into the deficit countries while making sure these investments are in form of FDI which would be used to invest in real domestic assets. (Germany is already investing in foreign assets that are not yielding a high return, why not invest in FDI in European countries with deficit, at the end of the day this will generate back to the surplus countries higher asset values and confidence).3. Consumption in deficit countries needs to be toned down but not completely killed by austerity measures..That way if the CA deficit is created by KA surplus then it would be healthier than one created by high levels of public and private debt.