Why is the euro zone unable to rebalance savings and investment?

In the United States, expansionary economic policies have led to a chronic external deficit, i.e. investment financed by the rest of the world’s savings. T he euro zone, meanwhile, now has a sizeable external surplus, i.e. a portion of the euro zone’s savings finances investment in the rest of the world, resulting in a significant loss of growth. Why is the euro zone unable to rebalance savings and investment and eliminate its external surplus? Probably because: The prospect of population ageing results in a high household savings rate despite the very low interest rates; The euro zone’s stringent fiscal rules remain the same despite its very low interest rates; Corporate investment is less responsive to a fall in interest rates than in the United States. A solution other than keeping interest rates very low will therefore have to be found to rebalance savings and investment in the euro zone.