German Economic Unification Twenty Years Later

in German Politics and Society

Has economic unification succeeded? Assessments differ, depending on the criteria selected, and the benchmark used. In many areas, from productivity to infrastructure and housing, dramatic economic improvements are readily apparent. Yet daunting challenges remain: the speed of productivity convergence has slowed, unemployment remains high and net emigration continues. Looking forward, demographic and fiscal trends pose serious challenges. This paper begins with a brief look back at the experience since 1989 before turning to a discussion of current and future challenges.