Article: East-West gap widens in Germany Election year alarm bell for SchroederIHT Insight

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Chancellor Gerhard Schroeder's sharp setback in a regional election in Eastern Germany last weekend reflects a deep-rooted problem that is causing increasing worry here: Germany's East-West economic divide, which initially narrowed following reunification, has steadily widened since the mid-1990s. Despite a massive campaign to integrate the fifth of the country that was once under Communist rule, at a cost so far of well over Û800 billion ($718 billion) in taxpayer subsidies, the East has slipped into a downward spiral of diminishing jobs, ever slower growth and a mass exodus of the best and brightest young people to the West. At the same time, the malaise in the ...

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