ABSTRACT

Germany's situation is marked by two challenges that affect and influence each other economically and politically. The first challenge, growing out of the reestablishment of Germany's unity after forty years of division, requires that comparable living conditions and equal opportunities be afforded all who live in Germany. The second challenge, much less commented on, requires that Germany pay close attention to its economic productivity, understanding that it is the only way for the country to maintain its prosperity, to be able to compete internationally. Germany's strength in the European markets, particularly in those of the Community, was helped in some measure by the import restrictions fixed on many Japanese products in several member states, including France, Italy, and Spain. For decades, the German chemical industry enjoyed prominence, having a strong competitive international position. It is especially important for the structure of the German economy that this position be maintained, and indeed strengthened.