Evaluation of the convergence of the economic level of Western and Eastern Germany

The aim of this work is the determination of the causes why the Eastern German economy is, in comparison with the Western Germany, on the lower level in spite of milliard grants, what are the causes of mass unemployment and whether the contemporary condition follows the resolutions of the year 1990. The first part of my work deals with the negotiations about creation of the united Germany and about consequent results, primarily those of economic, social and financial union. I mention briefly the role of the EG in the whole process. In the second chapter I describe the state of economy of the former DDR and the after-unification measures that where drawn to improve the situation. Then I deal with the phenomenon of ostalgy and with detailed economic development from the 1990s until today. In the final part of this part I introduce the reader with the German way of privatization helped by the Treuhandanstalt privatization agency. In the third chapter I deal individually with the areas where the East is behind the West -- structural insufficiencies, questionable innovative industry, low intensity of establishing of new companies and low inflow of investments, demographic progression, unemployment, salary conditions and indebtedness. In the fourth chapter I compare the New Länder with other problematic regions in Europe and with the countries of CEE. In the fifth chapter the differences among individual Länder are introduced by the macro-economic data. The sixth chapter deals with the questions about transfer payments that flow from the West to the East, and finally the seventh chapter which introduces the perspectives to the future and suggests the alternatives for improvement of contemporary condition and for establishing a new direction