I’m not saying that regulatory environment doesn’t contribute, but the monetary aspect has an amplifying effect. Germany’s trade surplus wouldn’t be able to be

I’m not saying that regulatory environment doesn’t contribute, but the monetary aspect has an amplifying effect. Germany’s trade surplus wouldn’t be able to be anywhere near as large without the rest of Western Europe pulling down the Euro exchange rate, and unemployment in the trade deficit countries likely wouldn’t be anywhere near as high without (from their perspective) Germany pulling the exchange rate high.