The Post-Unification German Economy
Introduction: The Fall of the Wall
The fall of the Berlin Wall in 1989 was the single event that most dramatically underlined the sea change from the Cold War era in Europe to a post-Cold War era. The fall of the Wall was followed almost immediately by the total collapse of the East German state, which until 1989 had appeared to be both the most repressive and the strongest of the Soviet-bloc states in Eastern Europe. With breathtaking suddenness — in the space of a year– came the full and formal reunification of the divided Germanies, a process that it had been presumed even in 1989 would take several years at least.
In the long run, reunification could only benefit the German economy…