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Despite or Because? – Some Lessons of German Unification for EU Enlargement

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Author Info
Ulrich Busch
Christian Müller () (KOF Swiss Economic Institute, ETH Zürich)

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Abstract

The former German chancellor Helmut Schmidt holds that despite the huge transfers from West to East Germany the East German economy does not take off as it was widely expected. We argue it is not despite these transfers but because of them. Building on the common features of the extension of the Federal Republic of Germany in 1990 and the enlargement of the EU, we argue that the German unification experience holds some lessons to the benefit of both, the EU-15 and the accession countries.

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Publisher Info
Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series Working papers with number 04-87.

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Length: 18 pages
Date of creation: May 2004
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Handle: RePEc:kof:wpskof:04-87

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Related research
Keywords: EU enlargement German Unification transfers fiscal policy

Find related papers by JEL classification:
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

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This page was last updated on 2008-10-3.

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