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Country Case Studies

In: The Successes and Failures of Economic Transition

Author

Listed:
  • Hubert Gabrisch
  • Jens Hölscher

Abstract

The treaty on the economic, currency, and social union with the Federal Republic of Germany (West Germany) of 1 July 1990 implanted the West German economic and social constitution almost instantly in the GDR. The economic union imposed the constitution that ruled the West German market economy including the common law of the European Union on a socialist CPE. The social union introduced the West German set of social entitlements to the GDR — the pension system, the unemployment benefits, the health system. The currency union made the D-Mark the legal tender in East Germany and regulated the conversion of the East German Mark. This import of West Germany formal institutions was more or less finished when the GDR acceded to the Federal Republic on 3 October 1990 and was transformed into the 5 new federal states of Germany. East Germany was included in the European Union, the Union’s first eastern enlargement.

Suggested Citation

  • Hubert Gabrisch & Jens Hölscher, 2006. "Country Case Studies," Palgrave Macmillan Books, in: The Successes and Failures of Economic Transition, chapter 9, pages 158-183, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62658-4_10
    DOI: 10.1057/9780230626584_10
    as

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