German reunification has failed economically: Ifo

Yahoo News ^ | Februari 10 2004 | AFP

[knighthawk]

LEIPZIG, Germany (AFP) - German reunification in 1990 has been a failure from an economic point of view, the head of leading economic research institute Ifo said in a television interview.

Since the wall came down in 1990, economic developments in the former communist east have been "worse and more catastrophic than even the biggest pessimists had predicted," Hans-Werner Sinn told the regional eastern German television station MDR.

The Ifo president said that wages in eastern Germany should be lowered so that the region can remain competitive with eastern European countries.

"In the medium term, wages in eastern Germany should fall to a level somewhere between the level of wages in Poland and in western Germany," he said late Monday.

Despite massive transfers of cash from west to east Germany over the past 13 years, the economic gap between the two parts of Germany has not narrowed and unemployment in the east is still more than double that in the west, Sinn said.

[knighthawk]

Europe-list

If people want on or off this list, please let me know.

[Luke Skyfreeper]

It'll catch up.

[dfwgator]

So, what's the solution, put back up the wall? bring back the Stasi? Bring back manly East German women swimmers?

[xJones]

I've heard western Germans say that they despise eastern Germans. They say that all those years under communism turned the East Germans into lazy slugs.

[lelio]

"In the medium term, wages in eastern Germany should fall to a level somewhere between the level of wages in Poland and in western Germany,"

Huh? Doesn't he have that backwards: that Western wages will fall to those of Easterners?

[The KG9 Kid]

The West Germans should sell the East Germans for whatever they can get for them on eBay as 'spare body parts', I think.

[facedown]

Huh? Doesn't he have that backwards: that Western wages will fall to those of Easterners?

Apparently not.

EAST GERMANY: 10 YEARS Of UNIFICATION WITH A VENGEANCE

[Semper Vigilantis]

I saw a show on the History Channel awhile back that interviewed East Germans about their lives since the wall came down. Almost all of the adults and teens complained that they were not prepared to make their own way in a free society. They were used to the government telling them what to do, when to do it, what to eat, where to get it, etc. Most of them said that they were better off under the old system.
The professionals (doctors, scientists, etc) were happy with the new government.

[An.American.Expatriate]

35-hour a week, 6-week vacation, free medical care, can't be fired...

one of the main reasons that the east hasn't recovered!! In order to "rebuild", you need investment and be able to offer a return on investment! How many businesses do you know that would invest billions in something so uncertain and with so many pitfalls?

The Germans instituted the "Solidarity Tax" just after reunification (7.5 % of taxes), which every worker pays. Billions have been poured in from the rebuilding funds built up during the 50's & 60's. But since 1990, German unemployment (even in the west) has been around 10% (about 4 million people). The popluation of Germany is close to 80 million - which mean 36 million are paying to support 44 million. No-one has come up with a good solution - CDU / SPD etc... are all clueless as to how to solve the dilema (although the CDU does have some good ideas!)

The only real solution is the elimination of the welfare state - a move no politician in Germany will EVER consider!

[Michael81Dus]

I sometimes think that the best of East Germany left the region long before reunification because of their hunger for freedom. Those who were left there must have felt comfortable ... somehow. Each year, more and more people move to West Germany, and the East dies out.

[Michael81Dus]

We must not ELIMINATE the welfare state. However, we need to make our SOCIAL STATE (Art. 20 I Basic Law: The Federal Republic of Germany is a social, democratic federal state.) affordable. Have you heard of the Herzog-Merz-reforms on Tax and welfare systems? They´re approved by the CDU Party Congress and will become law when Angela Merkel moves to Willy-Brandt-Str. 1 in Berlin.

[Drew68]

German reunification was doomed from the start. When the poorly fed and often drunk Soviets crossed into Germany in April of 1945 they deliberately and/or negligently destroyed the German infrastructure --powerplants, factories, hydroelectric plants, laboratories, etc., even if leaving them standing would have benefited the Red Army.

This plunged Eastern Germany into a backwardsness that they never recovered from.

[Drew68]

Soviets crossed into Germany in April of 1945

January of 1945. They entered Berlin in April of 1945.

[xJones]

I sometimes think that the best of East Germany left the region long before reunification because of their hunger for freedom. Those who were left there must have felt comfortable ... somehow. Each year, more and more people move to West Germany, and the East dies out.

East Germany can't die out. There were a lot hard-working people there at one time, and surely they haven't all left.

[An.American.Expatriate]

Until the German People realize that your "Social State" will NEVER be "affordable", Germany will continue to lose it's best and brightest and significant investment will not be made.

When less than half of the population of Germany is gainfully employed (36 of 80 million) and these are expected, through taxes, to support the rest, the "Social State" is doomed.

[SamAdams76]

I've heard western Germans say that they despise eastern Germans. They say that all those years under communism turned the East Germans into lazy slugs.

I've heard that too from the Germans that I know (I hosted exchange students from Germany for a couple of years). They view them in much the same way that some of us view Mexicans over here.

Just goes to show you how evil and destructive communism/socialism is. It strips you of all incentive. It's going to take at least two generations to erase the effects of communism over there, probably longer because the West Germans are half-socialists themselves.

[Michael81Dus]

Are you for real? Every year 160,000 people move to the West. The situation there is with 20% unemployment not very prosperous... :-(

[Stallone]

Integrating with the Socialist East was the biggest mistake since Al Gore became a member of the human race.