East german economy after reunification

In the wake of that resolution of accession, the "German reunification treaty", [11] [12] [13] commonly known in German as " Einigungsvertrag " (Unification Treaty) or " Wiedervereinigungsvertrag " (Reunification Treaty), that had been negotiated between the two German states since 2 July 1990, was signed by representatives of the two Governments on 31 August 1990. This Treaty, officially titled Vertrag zwischen der Bundesrepublik Deutschland und der Deutschen Demokratischen Republik über die Herstellung der Einheit Deutschlands (Treaty between the Federal Republic of Germany and the German Democratic Republic on the Establishment of German Unity), was approved by large majorities in the legislative chambers of both countries on 20 September 1990 [14] (442–47 in the West German Bundestag and 299–80 in the East German Volkskammer). The Treaty passed the West German Bundesrat on the following day, 21 September 1990. The amendments to the Federal Republic's Basic Law that were foreseen in the Unification Treaty or necessary for its implementation were adopted by the Federal Statute of 23 September 1990, that enacted the incorporation of the Treaty as part of the Law of the Federal Republic of Germany. The said Federal Statute, containing the whole text of the Treaty and its Protocols as an annex, was published in the Bundesgesetzblatt (the official journal for the publication of the laws of the Federal Republic) on 28 September 1990. [15] In the German Democratic Republic, the constitutional law ( Verfassungsgesetz ) giving effect to the Treaty was also published on 28 September 1990. [16] With the adoption of the Treaty as part of its Constitution, East Germany legislated its own abolition as a State.

The communist German Democratic Republic was established in the historic "Mitteldeutschland" ( Middle Germany ). Former German territories east of the Oder and Neisse rivers, mainly the Prussian provinces of Pomerania , East Prussia , West Prussia , Upper Silesia , Lower Silesia , the eastern Neumark of Brandenburg , and a small piece of Saxony were thus detached from Germany. To compensate Poland for the USSR's annexation of its eastern provinces, the Allies provisionally established Poland's post-war western border at the Oder–Neisse line at the Yalta Conference (1945). As a result, most of Germany's central territories became the Sowjetische Besatzungszone (SBZ, Soviet Occupation Zone). All other lands east of the Oder–Neisse line were put under Polish administration, with the exception of historic northern East Prussia , which went to the USSR. [28]

Negative images of this era can be found. Extremists continued to disturb meetings of opposing political groups, coalition governments were often ‘minority’ governments – meaning that the coalition itself didn’t have a majority and there were frequent changes of allegiance and political leadership during this era (by fuller ). It can be argued that this is far from being a stable environment, indeed it can be seen to be a government still teetering on the brink of political extinction. Little appeared to change in terms of society – there was merely a return to the traditional elites managing the economy and dominating industry. Democracy therefore, appears to still be under threat: the election of Paul von Hindenburg as President indicates that there is still some way for the republic to go. He was no great fan of democratic principles and was a known sympathiser with the Right Wing.

SUEDEKUM: We also had these losers of globalization here in Germany, people who had problems because of trade. But [the] big difference is, in Germany, these people receive more support from the government. There’s a safety net. There is trade-adjustment assistance. There’s active labor market policy trying to bring these people back to other jobs elsewhere and subsidies, trying to keep the communities alive. We do a relatively better job in cushioning the losers.  I’m not saying we’re perfect in that, but I think we’re doing a better job than the United States.

East german economy after reunification

east german economy after reunification

SUEDEKUM: We also had these losers of globalization here in Germany, people who had problems because of trade. But [the] big difference is, in Germany, these people receive more support from the government. There’s a safety net. There is trade-adjustment assistance. There’s active labor market policy trying to bring these people back to other jobs elsewhere and subsidies, trying to keep the communities alive. We do a relatively better job in cushioning the losers.  I’m not saying we’re perfect in that, but I think we’re doing a better job than the United States.

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