Since the turn of the millennium Germany is exhibiting large export surpluses, which are widely perceived as a sign of economic strength, it is shown that since the turn of the millennium rising export surpluses were led by high net capital exports, which were driven by a restrictive fiscal policy combined with a loose monetary policy. Since the outbreak of the European financial and debt crisis, German export surpluses were maintained by extensive rescue measures for euro area banks and southern euro area countries, while the costs were shifted to the German citizens. With Germany’s foreign assets being to a substantial degree devalued, German current account surpluses can be seen as a subsidy in favor of German export corporations and foreign consumers, at the cost of German consumers and small corporations.