Botched reunification - sell-out of the East?
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On October 3, 1990, formal reunification ended more than four decades of division in Germany. At first glance, everything now seems the same: the Basic Law becomes the German constitution and legal procedures apply everywhere, as do pension and health insurance benefits. Nevertheless, immediately after reunification, many young, well-educated and able-bodied men and women travel to the West in the hope of a career that they cannot find in the run-down East. In doing so, they set in motion a demographic change that leads to a spiral of negative developments. The young people leave, the old stay. Soon, shops have to close due to a lack of customers and employees have to be laid off. The then German Chancellor Helmut Kohl is clear that quick action is required if the East is not to be lost to emigration. The currency is supposed to help. It is decided that the D-Mark can be exchanged with the East Mark at a ratio of 1:1. A good idea in the short term, because the strong D-Mark leads to a sudden increase in the purchasing power of East Germans. People are happy, but economic experts warn of the long-term consequences. Companies suddenly have to pay much higher wages, but can no longer sell in Eastern Europe so easily because the D-Mark exchange rate is too high. Many companies are facing bankruptcy. In times of need, many shops, hotels and restaurants are being privatized and more than half of the industrial companies are being transferred to a trust company. But new buyers are hard to find because they have to be renovated and invested. In addition, Eastern products are out of fashion immediately after the fall of the Wall. What follows is profound disillusionment. Many companies are being closed and abandoned or even gutted. Unemployment is rising, the East is lagging behind economically and many see themselves as losers of the fall of the Wall. Mirko explains the negative aspects of reunification in this video. We are also part of #funk. Be sure to check it out: YouTube: / funkofficial Funk Web-App: https://go.funk.net A production of objektiv media GmbH for funk Moderation: Mirko Drotschmann Author: Matthias Schöberl Producer: Markus Linke Postproduction: Rainer Düring Camera: Paul Tzschoppe Assistant Director: Anna Schade
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