Article: Together again: the fiscal cost of German unity. (economic impact of reunification of East and west Germany)

The formal reunification of East and West Germany on October 3, 1990, was the culmination of a decades-long German dream. And Germans have since made remarkable progress in reintegrating two societies whose paths had diverged sharply since World War II. East and west now enjoy common political and judicial institutions and processes, as well as sharing the same social network. Eastern Germany is now fully integrated into the revenue equalization scheme between the Lander (states) and the federal government. The overall income differential, 55 percent in 1990, has narrowed to 25 percent.

But much remains to be done. For the most part, the societal and political elites ...

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