Post a Comment Print Share on Facebook
Featured Kamala Harris Arizona Cardinals Barclay Goodrow Porter Moser Trump


German reunification: the disillusionment of the Deutsche Mark for all

It was the evening of 9 November. An entire nation was freed, as was prepared to sing then Jean-Pax Méfret (former reporter of le Figaro) . Nearly forty years to wait, and yet: after the joy of families found, of national feeling, again assumed, the first few weeks of exultation, already occurred a new trial. That "hook" the ways of working, to produce and exchange between Össis and Wessis, merging the two regimes antithetical worn by the political philosophies of the enemy: capitalism and communism.

see also : Fall of the Berlin wall: and during that time, in France...

there is Nothing in common between the system of the federal republic of GERMANY, firmly anchored in the european economic community, which shines through, with its industrial cities, and the planned economy of the GDR, which many historians now regard as the edge of the abyss at the beginning of the 1990s. The two countries share, obviously not the same currency. To the west, the Deutsche Mark leads european currencies, revalued several times. The Mark is on his side inconvertible abroad, the authorities merely to allow trade on the basis of the Deutsche Mark via its substitute, cheques special so-called "Forum". Their purchasing power in respective have nothing to do. Rents remain anecdotal in the east. The cars are incomparably more modern to the west, for similar prices. In the eyes of the citizens of the GDR, the electronic equipment exchange for a pittance in the west. The benchmarks are different for each product.

the equality of The two marks, the symbol policy

The question of the reunification of money arises, therefore, immediately to the west German government, because of the thousands of citizens of the is flock to find jobs and wages in Deutsche Mark. A territorial imbalance and a smothering of the two economies are on the horizon. The government of Helmut Kohl addresses immediately the subject and enters into negotiations with the administration of the GDR, along with other political discussions. The prize money is even more urgent that the integration of the FRG and its constitution, the Basic Law. The treaty on monetary, therefore, is signed in Bonn on 18 may 1990, six months only after the fall of the wall.

Surprise: the rates of conversion, major component of the discussions, is officially of 1 Deutsche Mark for a Ost Mark. On the black market the Ost Mark was less strong, trading at 4 or 5 for 1 Deutsche Mark. The federal bank and the Sachverständigenrat, a board of financial experts, who regret: it is the choice of the radicalism that has made Helmut Kohl, away from their advice. Them provided, as pointed out by the historian Bernd Zielinski, a solution in stages, with a fixed exchange rate which took into account the competitiveness lesser of the GDR. Investments western would have been facilitated, stimulating the catch-up, and measures in tax and social security would have helped the citizens is to stay at home to limit the leak. Similarly, political opposition, trade unions and employers were largely to unrealistic conditions of monetary union.

The government had carried his project by means of the same economic miracle for the former GDR for the federal republic of GERMANY of 1948. Worn by the grand coalition in march 1990, Helmut Kohl had, during the campaign, informally promised the conversion egalitarian. But it was based mostly on the image for extremely high of the Deutsche Mark in the whole of the Germans. After denazification, the patriotic symbols of the German nation had changed: the currency of the west symbolized the return to prosperity, and to a form of freedom, both political and consumerist. The currency representing the people. Generalize the Deutsche Mark other than equal with the Ost Mark, it was a fool of the citizens of the east, who no longer have "earned" a quarter, a fifth or even less, to their brethren of the west. Accept the conversion to the so-called 1-to-1, it was to save the appearances, and the fellowship of equals. Far from any ideology, the technical proposals in the matter were in fact on the policy needs. To try to soften the blow, the rate of 2: 1 was, however, chosen for certain liquidity of companies, and for private heritage above certain amounts depending on the age.

A blast for the employment in the GDR

Alas, if appearances can be sufficient to create market, if the illusions are the driving force behind many successes in the capitalist system, the conversion egalitarian did no miracle. Declare the equality of citizens through the medium of money, it was to increase that capitalist production was the production of the communist regime. Associated with the Treuhand agency for privatization of enterprises of the GDR, and an opening brutal markets, the extent porta, in fact, the coup de grace to the industry is. Overall, the rate of conversion found according to the conditions laid down was 1.8 Ost Mark for one Deutsche Mark. Instantly, the companies had to pay their suppliers as well as wages in Deutsche Mark, so that their productivity had taken decades of delay. Similarly, their products could only be compared to those of the west, who yet invaded the showcases. Lack of opportunities, operating costs increased: as early as the summer of 1990 and the entry into force of monetary union, the number of bankruptcies multiplied and the industrial production retreated by half. About a year ago, the GDP of the GDR decreased by approximately 25% in the second half of 1990, and would continue to fall in 1991. In the past five years, one out of three will be declared bankrupt.

see also : Joachim Gauck: "Every day, the pressure rose to a reunification to the faster"

The depression new, and settled because of the overestimation of the manifesto of the currency had, of course, effects on employment, contrary to the hopes of the federal government. On the third quarter of 1990, the number of assets is decreased from 9.6 million to 8.6 million. The leak of the citizens sped up, as predicted in the federal bank. By a cruel irony, the arrival of this force of work and consumption was particularly well digested by the federal republic of GERMANY, which experienced growth of over 5% in 1990 and 1991. The GDR gave way to five new Länder of the east, which, despite the growth achieved, have not yet cleared these dark years, nor caught up with their counterparts in the west. Of course, the monetary union failed in 1990 is probably not the only one responsible for the Ostalgie still in vogue. But the Deutsche Mark, disappeared a few years after in the great cauldron of the euro, is not a good memory for all the Germans.

The editorial team conseilleÉdouard Husson: "The leadership of the German will be increasingly ineffective,"the fall Of the Berlin wall to the great disorder démocratiqueCe Berlin wall whose fall astounded the mondeL'euro is too strong 6.8% for France and too low of 18% for Germany according to the FMISujetsHelmut KohlAllemagneMonnaieMur of Berlin8 commentairesLa peuplele 11/11/2019 14:22

The symbol called on all the rest , no matter how îls is not a question of ruining a can more the former GDR ... But Germany had to pay for the rest of their country ... The 70 àns of soviet occupation to leave a trace importànte... That is economically and ideologically... Some will always find better a communist system ( egalitarian principle ) in a system of capitalism ...
But do not forget that the communist were the repression of individuals, as soon as the idea or dè some libertee... Now the capitalism to the utmost is not acceptable...

peuplele 09/11/2019 14:43

Well , if reunification appears to be a failure , I see that the west German to buy a German mark for one deutsche mark west , a hell of a deal for sure ...
Then for the last 30 years , Germany has rebuilt all the historic buildings which had not was reconstructed during the 70 àns of communist occupation ... moreover if the Germans Ons lost the deutsche mark , îls Ons gagnier , the euro, a currency common to 400 million europeans and a huge domestic market...
For the rest , îls is difficult to catch up with the 70 àns do not devellopement and dè changing the attitudes of the communist convinced...

Theo Adlerle 09/11/2019 13:42

This is an article that explains well the problems of currency when the currency area is not optimal (in the words of another)...
- FRG versus GDR to the mark
- Germany Versus Greece Italy Spain Portugal France for the euro.

Read the 8 comments
Your Name
Post a Comment
Characters Left:
Your comment has been forwarded to the administrator for approval.×
Warning! Will constitute a criminal offense, illegal, threatening, offensive, insulting and swearing, derogatory, defamatory, vulgar, pornographic, indecent, personality rights, damaging or similar nature in the nature of all kinds of financial content, legal, criminal and administrative responsibility for the content of the sender member / members are belong.