The Impact of Reunification

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  • The Impact of Reunification
    • Economic
      • Strengths
        • real income in East rose c28% 1989-1991
        • 175,000 new businesses founded
        • investment programme launched March 1991
          • new roads, phone lines & shopping centres
          • railways upgrades & buildings renovated or replaced
          • govt. money put into housing, agriculture, service & industrial infrastructure
      • Weaknesses
        • E.G. GNP fell 13.4% 1990 & another 20% 1991
        • growing unemployment
          • hit women hardest
            • esp. those reliant on state childcare
        • West & EEC competition hit areas suffering structural long-term unemployment
        • currency union too hasty & rates too high
        • many failing industries collapsed
        • industrial production fell 2/3 in 2 yers
    • Political
      • Strengths
        • Dec 1990 - first all German free election since Nov 1932
        • FDP emerged in a stronger position (created CDU/CSU coalition) & was the financial support for Kohl's policies
        • smaller parties appeared & became more influential
        • extreme RW failed to win sufficient votes to win a seat
      • Weaknesses
        • communists returned for the first time since 1949
        • reunif. aid didn't help SPD who performed poorly
        • green party lost out & won no seats
        • FDP in less strong position as party that preserved balance of power
          • PDS became a new force
    • Social
      • Strengths
        • new encouragement of free thinking
        • in 6 months 21% E.G. had moved to new job, 8% unemployed & 10% early retirement
        • developed industry/modernised. efficientcy increased
        • younger gen. adopted new attitude, initiative, drive, competition & responsibilty
        • communist political sympathisers lost positions in judiciary/education & was reformed along democratic, Western lines
        • more liberal/free society
      • Weaknesses
        • increased racism directed at Gastarbeiter & asylum seekers
        • rising crime rates & youth delinquency
        • hard to change older generations attitude
          • 40 years of communist propaganda, traits e.g. compliance, passivity & withdrawal
        • new 'free' standards turned bored teens into skinheads & disillusioned adults into criminals
        • solidarity tax - resented by all Germans
        • living standards did not immediately rise to those of W.G.
        • less need for manual labour which hit female employment

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