The Economics of German Unification
Language: English
Pages: 268
ISBN: 0415085926
Format: PDF / Kindle (mobi) / ePub
German unification is proving much more difficult than was originally envisaged. The integration of two national economies with different economic orders, different sectoral structures and divergent levels of development seems set to take a long time. This timely examination of the major issues involved emphasises the impact of unification on different sectors of the economy and their likely consequences.
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University of the Federal Armed Forces Hamburg Klaus-Dieter Schmidt, Kiel Institute of World Economics Günther Schmitt, University of Göttingen Egon Tuchtfeldt, University of Berne Klaus Zimmermann, University of the Federal Armed Forces Hamburg xi xii PREFACE The idea of preparing this b ook on the economics of German unification was born in the heat of the German unification process in the winter of 1990–1, during discussions at the seminars held by t h e I n s t i t u t e f o r E c o n o.
Fully efficient tax administration is established as soon as possible. Unlike western Germany, the most important elements for taxation are indirect taxes, because income-tax revenue as a consequence of the low taxable base and the identical tax schedule (with only slightly increased basic exemptions) has only a low-yield elasticity; wage 77 TH E ECONOM ICS OF G E RMAN U N I F ICATION Table 5.1 Estimated revenue of new eastern German states in DM billions 1 In order to improve the financial.
Thus, two-thirds of the young people surveyed (up to 29 years old) expect the adjustment process to take more than five years, while more than 50 105 TH E ECONOM ICS OF G E RMAN U N I F ICATION Figure 6.4 Comparison of job and leisure orientation in east and west Germany > more important than. =equally important to. < less important than. Sources: Wohlfahrtssurvey (1988); Wohlfahrtssurvey East (1990). per cent of those over 60 expect this aim to be reached within half a decade. The unemployed.
Forces of the United States, United Kingdom and France in Berlin for the period of the Soviet military presence in Germany. Following the completion of the withdrawal of Soviet troops, units of German armed forces assigned to any alliance structure to which Germany is a member may also be stationed in that part of Germany, but without nuclear-weapon carriers. Foreign armed forces and nuclear weapons or their carriers will not be stationed in that part of Germany or deployed there after the Soviet.
Billion in 1990, the balance of trade, services and transfers from DM 104.0 billion to DM 71.9 billion respectively. See Deutsche Bundesbank (1991 March: 75). 10 See OECD (1990:60). 11 See OECD (1990:64). 12 See Deutscher Bundestag (1990:33–4). 13 See Cecchini, P. (1988). 14 See text of the EC treaty. 15 By majority decisions of the European Council with proposals and recommendations of the Commission. 16 The institutional and legal aspects of this problem cannot be discussed here. For details.