The West benefited enormously economically from German reunification

Prof. Ulrich Blum, head of the Halle Institute for Economic Research, dispels the myth that the former West Germany alone financed the economic recovery of the East. His 2011 study was kept secret because the findings did not correspond to the widely held perception.

After the fall of the Berlin Wall, the privatization of East German companies began. At the time, however, no one wanted to relocate company headquarters to the GDR. And for the following reason: “Where the company headquarters are, that is where the money is too. Therefore, one must honestly say: West German municipalities were not interested in having company headquarters relocated to the East.” In this way, East Germany was turned into an “extended assembly hall.”

The result: A considerable portion of the money that the “Wessis” invested in rebuilding the “Ossis” “returned directly to the West through the tax system, the consumption of West German goods by East German citizens, and the massive exodus of capital and skilled workers.”

Now, who rescued whom?

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