Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Unsurprisingly, eastern Germans today think, feel and vote differently than western Germans do. In fact, Germany is one country with two souls.Between 1991 and 1996, per capita income in eastern Germany increased from 42 percent to 67 percent of west German levels.In other words, the post-1989 process of economic convergence between eastern and western Germany largely came to a halt around 25 years ago.The currency reform caused eastern German wages to rise to western German levels, even though eastern productivity was only 10 percent of that in the west.For a while, the eastern German economy grew rapidly and started to catch up with western Germany. But without the Treuhandanstalt to provide further subsidies, western firms did not want to invest in eastern Germany. Instead, the agency should have continued to offer subsidies to foreign firms willing to invest in eastern Germany, in order to compensate for the high wages there.But it is never too late for Germany to restart the economic convergence process.
Restoring competition in the digital economy
FOLLOW THIS ARTICLE