Economic Recovery In The East - A Task For All Germans : Germany

The state of economic development in eastern Germany was desolate in October 1990. A very productive, internationally competitive economy in the west faced an economy in the east that was woefully ill-equipped and ill-prepared for the upcoming process of integration.

The restructuring of a highly unprofitable economy into one with competitive operational structures required immense concerted efforts on the part of all involved - the business community, the government, and especially the people of eastern Germany, who to this very day have played a crucial role in propelling the renewal process. Progress of this magnitude could only be achieved because the people in the new federal states demonstrated exemplary initiative and willingness to adjust to changed circumstances. Often they had to learn new skills, move to another area or even come to terms with unemployment. After the fall of the Wall, a key role in the first phase of the economic restructuring process in the new states was played by the Treuhandanstalt (Trust Agency), a public privatization agency founded in 1990.