ABSTRACT
The economy of the new “Lander” of the Federal Republic of Germany is in such a radical state of upheaval, that any prognostication of prospects would be scientifically untenable. The depreciation of everything originating in the gross domestic product (GDP) has already led to a fall in East Germany’s GDP. The politically motivated decision for the currency union has found support by economic arguments. It was argued, inter alia, that large companies of the West German industry and international capital would rush into the GDR, and that small and medium entrepreneurs ready to “take off” would lead to a boom of newly founded enterprises. The “Wahrungsschnitt” is functioning like a self-set trap: if transfers are too small for maintaining certain standards of living, social and political unrest may add a burden to the process of unification, and workers will leave the country.
