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EC Integration and Economic Reforms in CMEA Countries: A United Germany as a Bridge between East and West?

  • Paul J. J. Welfens
  • Martin Schrenk

Abstract

The German unification that took place economically on July 1, 1990 and politically a few months later on October 3 creates a new Germany in the center of Europe. Integrating the former GDR with its 16.4 million inhabitants into the Federal Republic of Germany means not only a 26.7% increase in its population, but also the movement of the EC border by some 200 miles eastwards — the (former) CMEA thereby losing a member country and the Federal Republic of Germany becoming the immediate neighbor of Poland. Germany faces the challenge of organizing the systemic transition to a market economy in the territory of the former GDR with its labor force of 8.5 million, about a quarter of them working in one of 8000 state enterprises grouped under the last Communist government in a state holding company, the “Treuhandanstalt”.

Keywords

Foreign Direct Investment Monetary Policy Shadow Economy Outward Foreign Direct Investment East European Country 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1992

Authors and Affiliations

  • Paul J. J. Welfens
  • Martin Schrenk

There are no affiliations available

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