Economic problems today 2001 – 2004 GDP increase of 0.6 %/year (eurozones combined average of 1.3%) 5 Mill unemployed = 10% of the work force (eurozone average is 8.7%) East Germany: 20%. Exports grown by 57 % since 1999. Eastern Germany remains a major problem for the country
Founding of two German States Proclamation of the Federal Republic of Germany (FRG- BRD): 23. May 1949 Chancellor: Konrad Adenauer Proclamation of the Democratic Republic of Germany (GDR – DDR): 7. October 1949 Head of State of the GDR: Walter Ulbricht
Alliances FRG: Member of Western European Union 1955: Nato Recognition of Oder- Neisse Border
Alliances GDR 1955: Member of Warsaw Pact Both countries become members of the UN in 1973
GDR: Policy of demarcation 1949-1989 1952: closing of the borders 1961: building of the Berlin Wall 1967: separate citizenship Staatsbürgerschaftsgesetz – Law of State Citizenship 1970: proclamation of the socialist nation 1974: removal of the word German from the constitution
State Security Apparatus (Staatsicherheit – Stasi) Ministerium für Staatssicherheit – Ministry for State Security Role of the Stasi
Factors leading to Reunification International factors: Decline of Eastern block states: Gorbachevs reforms of Glasnost (openess) and perestroika (restructuring) Economic success of the Federal Republic
Factors leading to Reunification National factors: 1. Dissatisfaction with socialism 2. The economic situation in the GDR 3. The majority of West-Germans wanted to be reunited with the East Germans.
On the road to reunification Effect of glasnost and perestroika: non- communist governments in Hungary, Polen and Czechoslovakia. Opening of borders to the West 1000s of GDR citizens flee to FRG embassies in Hungary
National factors Monday demonstrations: discontent of the people Wir sind das Volk – we are the people Wir sind ein Volk – we are one people 4. November 1989: Demonstrations: http://web.uvic.ca/geru/2 61/003.jpg http://web.uvic.ca/geru/2 61/003.jpg
GDR economy 1970 - 1989 1971: economic problems Honeckers solutions: Cheap housing, higher basic wages, better pensions, better maternity provisions, better health care in order to have a better work force. Problem: how to finance this?
Economic problems Export deficit of 390 million DM Import deficits of 100 million DM: solution: 1972: nationalisation of 11500 private firms (Volkseigene Betriebe - VEB) Increase of economic production, but factories old. No investment in industry 1983: production half that of BRD
Debt State subsidies: rent, food, health = 1980s: quarter of state budget 1981: debt of 24.2 thousand million DM Raising foreign currency: selling of antiquities, art and people
Fall of the Berlin Wall Fall der Berliner Mauer 9 th November 1989: Fall of the Wall 18 th March 1990: first free democratic elections in the GDR 1 st July 1990: Treaty for the creation of a Union of the Currency, Economy and Society 3 rd October 1990: Date of reunification – Tag der deutschen Einheit
Fall of the Berlin Wall Maueröffnung 1989: http://web.uvic.ca/g eru/261/004.jpg http://web.uvic.ca/g eru/261/004.jpg http://web.uvic.ca/g eru/261/005.jpg
Basic Law Grundgesetz der BRD New Preamble im Grundgesetz: Die Deutschen haben in freier Selbstbestimmung die Einheit und Freiheit Deutschlands vollendet. In free self-determination, the Germans have brought to completion the unity and freedom of Germany.