Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
East German beneficiaries of 1:1 conversion.

The primary effect of the 1:1 conversion was to singlehandedly kill off the existing East German economy, having rendered it uncompetitive on price. Resulting in mass joblessness for those happy 1:1-conversion-beneficiaries after they dutifully voted for benevolent uncle Kohl. The failure to really correct that sucked up €1.5 trillion in (West German) public funds -- way more than what the new EU members will be ever getting, yet the latter will likely be more effective (and, heh, German firms will benefit more). Germany would be counted as Sick Man of Europe, with growth lagging behind France too, for a number of years. So you can't say that the effects on France & the rest of the EU were greater than on Germany itself.

Thanks for the Krugman link, didn't knew he was this good a predictor.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Tue Sep 11th, 2007 at 05:49:18 PM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series