World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
Merkel's Defense of Euro Forged in East Germany
Keywords:
Merkel tells a Davos meeting in January 2011, that "the euro is much more than a currency, it is the embodiment of Europe today." The idea of the euro as needed for the political and economic integration of Europe is accepted. Merkel also says "that "solidarity and competitiveness are two sides of the same coin." Suggesting that the slower economies in Europe will have to remake their economies, just as East Germany did when it joined a reunified Germany. Mathias Dopfner, CEO of Axel Springer, says Merkel knows from personal experience the traumas faced by a bankrupt economy. At the time of reunification the deutsche mark would become the national currency, even though the value of the mark reflected productivity levels and the strength of the economy of the western part. East German businesses were priced out of the job market. About 14,000 businesses were shut down and 4 million jobs were lost in the first five years after formal reunification in 1990. Unemployment jumped to 20% in East Germany in 2005. After the fall of the Berlin Wall two million people of the 16 million living in the East moved west, most of them younger people. For West Germans there was a price also. Germany has raised 1.7 trillion euros through an income tax "solidarity surcharge" for modernizing East Germany. Volker Perthes, director of the German Institute for International and Security Affairs, says Merkel knows what resistance and what dangers come with structural adjustment programs. And she has to sell the programs and insist on strict conditions for German aid to Portugal, Spain and Greece. After many years the project has paid off. The unemployment rate in the east is 11.7%, much closer to the 6.4% in the west than before, and the growth rate in the east is 2.7% compared to the 3.6% in the west. The antiquated industrial base in the east has been replaced with a solar power sector and new chemical engineering and microelectronics industries.
The Sarkozy-Merkel meeting in Deauville, France, October 18, 2010, that sets the stage for a closer union for the EU.
12/27/2010
Germany and France make the momentous decision to move forward with a closer fiscal union of the 16 nation European Union. The efforts to build anew the conditions for the Euro to succeed. The vision of a united Europe persists.
Grouped Articles
New Attempt at French-German Amity Stumbles in Venice
Wall Street Journal 08/21/2013
Germans Respond to Merkel's 'Motherly' Side
Wall Street Journal 08/23/2013
German Election Overturns Political Order
Wall Street Journal 09/23/2013
New York Times 05/22/2014
Economist 11/11/2015
As Ireland Flails, Europe Lurches Across the Rubicon
Wall Street Journal 12/27/2010
The experience of integrating East Germany into a reunited Germany and a tighter union for the EU
09/30/2010
German chancellor Merkel's own experience with the integration of east Germany- the price paid and the effort needed from both parts of Germany- is relevant to the project for building a tighter framework for the European Union. A special reunification tax generated 1.7 trillion euros to finance the effort and rebuild the eastern part of Germany.
Grouped Articles
For Some Germans, Unity Is Still Work in Progress
New York Times 09/30/2010
In a United Germany, the Scars of the East-West Divide Have Faded
New York Times 10/02/2015
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
Portugal Premier: No Bailout Needed
Wall Street Journal 02/04/2011
Merkel Taps Adviser to Head Bundesbank
Wall Street Journal 02/17/2011
Germany's economy: Angela in Wunderland
Economist 02/05/2011
France and Germany- efforts to define the European Union in 2010-2015
08/19/2010
Grouped Articles
Poll Shows European Union Loses Favor on Continent
New York Times 05/13/2013
New Attempt at French-German Amity Stumbles in Venice
Wall Street Journal 08/21/2013
New York Times 05/22/2014
Economist 08/08/2015
Charlemagne: The neighbours fall out
Economist 08/19/2010
BusinessWeek 09/30/2010
How Germans view their identity in 2010.
09/30/2010
Grouped Articles
For Some Germans, Unity Is Still Work in Progress
New York Times 09/30/2010
BusinessWeek 09/30/2010
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
Views on the successs of German reunification.
09/30/2010
Grouped Articles
For Some Germans, Unity Is Still Work in Progress
New York Times 09/30/2010
BusinessWeek 09/30/2010
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
Germany's economy: Angela in Wunderland
Economist 02/05/2011
The Euro currency and the European Union
11/04/2008
The European Union currency since its inception and after the economic crisis of 2008-2009.
Grouped Articles
Euro May Be Resurfacing as a Safe Haven
Wall Street Journal 02/04/2014
New York Times 05/22/2014
Dollar Surges to 11-Year High Against Biggest Rivals
Wall Street Journal 01/04/2015
Wall Street Journal 11/04/2008
Joseph E. Stiglitz -- Farewell to the Dollar as the World's Currency of Choice
Washington Post 09/03/2009
World Bank Head Sees Dollar’s Role Diminishing
New York Times 09/29/2009
Angela Merkel's handling of the financial crises in eurozone countries
04/29/2010
The German response to the debt crisis in the eurozone and the events in 2011-2012.
Grouped Articles
As Greek Drama Plays Out, Where Is Europe?
New York Times 04/29/2010
Germany Clears Rescue for Greece
New York Times 05/03/2010
Economist 05/13/2010
Germans Respond to Merkel's 'Motherly' Side
Wall Street Journal 08/23/2013
Merkel Wins Big in German Election
Wall Street Journal 09/23/2013
Germany's Surplus Isn't the Problem
Wall Street Journal 11/11/2013
Conditions in East Germany.
09/21/2009
Lack of popularity of the Christian Democrats in the the east.
Grouped Articles
German elections pit Merkel, challenger over poverty problems - The Washington Post
Washington Post 09/17/2013
In a United Germany, the Scars of the East-West Divide Have Faded
New York Times 10/02/2015
Merkel Votes Scarce in Eastern Region
Wall Street Journal 09/21/2009
For Some Germans, Unity Is Still Work in Progress
New York Times 09/30/2010
BusinessWeek 09/30/2010
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
German reaction to the debt crisis in Greece, Portugal, Spain and Italy.
04/09/2009
Germany said to be turning nationalistic in this crisis, seeing Germany's economic successes as its own, and not accepting the advantage of export markets in Europe in strengthening Germany's economic position.
Grouped Articles
Wall Street Journal 03/03/2010
New York Times 11/03/2013
Germany's Surplus Isn't the Problem
Wall Street Journal 11/11/2013
How Italy's ENI Vastly Boosted Oil Output
BusinessWeek 04/09/2009
Greek Crisis Shows How Germany’s Power Polarizes Europe
Wall Street Journal 07/07/2015
New York Times 05/26/2010
Shifts in German public opinion to bailouts of other European countries
12/01/2010
Grouped Articles
Germany reaps rewards of entitlement cuts - The Washington Post
Washington Post 09/20/2011
Collapse of Greek Bailout Deal Brings Surprise Boost to German Coffers
Wall Street Journal 07/04/2015
Greek Crisis Shows How Germany’s Power Polarizes Europe
Wall Street Journal 07/07/2015
Merkel’s German Critics Say Greek Bailout Was Doomed From Start
Wall Street Journal 07/08/2015
Debt crisis tests German ties to euro
Washington Post 12/01/2010
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
Reflections on the European Union, the idea and fact of Europe.
12/01/2009
The vision of a united Europe persists during the eurozone crisis.
Grouped Articles
New York Times 05/22/2014
Europe’s Foreign Policy Guide Passes His Compass
New York Times 12/01/2009
As Ireland Flails, Europe Lurches Across the Rubicon
Wall Street Journal 12/27/2010
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
Portugal Premier: No Bailout Needed
Wall Street Journal 02/04/2011
Merkel, in Reversal, Urges Rescue of Euro
New York Times 02/03/2011
The European Union and the financial crisis of 2010-2011
05/13/2010
The E.U. and the $1 trillion package to calm the panic in financial markets after the crisis in Greece. Efforts to prevent the contagion effects spreading to Spain and Portugal.
Grouped Articles
New York Times 05/22/2014
Economist 05/13/2010
Don't Rule Out a Double Dip Recession
Wall Street Journal 05/24/2010
Wall Street Journal 05/22/2010
Luxembourg Foots a Big Piece of the Greek Tab
BusinessWeek 05/27/2010
ECB Chief Seeks Tighter Fiscal Union
Wall Street Journal 06/22/2010
Angela Merkel's experience with the reunification of East and West Germany and her views of the eurozone crisis
01/30/2011
The perceptions of the eurozone crisis of ordinary Germans and of former East German Angela Merkel are colored by the period of reunification of the two Germany's. This was paid for with a"solidarity surcharge" tax paid by Germans amounting to $1.7 trillion and led in its early stages to 4 million unemployed in the eastern part and 20% unemployment. It took over a decade for East Germany to build new modernized industries in the larger cities of the east, but still leaves the rural parts of former East Germany in a neglected state as young peoplemoved out. During this period industry in the west also regained lost global competitiveness, especially in industries such as automobiles and advanced machinery, using wage restraint agreements with unions and increases in productivity. Germans see the need for eurozone countries in the southern part of Europe needing to make similiar sacrifices and see the tax evasion in Italy and Greece as unacceptable. The real estate bubble, the lack of transparency for banks bad loans, and out of control regional spending in Spain is also seen in a similiar light. Greece is seen as the most egregious offendor because of the bad financial accounting that grossly understated the extent of the bad loans. Less publicized in Germany is the role played in the bad loans through poor lending practices of German and French banks and that as experts have pointed out Germany was to some extent bailing out German banks when it was bailing out Greece- till German banks reduced their exposure to Greece in 2011.
Linked Articles
In former East Germany, anxious residents resent paying for Europe’s problems - The Washington Post
Washington Post 06/21/2012
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
Greece's Path Back (10)- Germany's and chancellor Merkel's view of the euro and the changes needed
01/30/2011
Linked Articles
Wall Street Journal 04/10/2013
Merkel's Defense of Euro Forged in East Germany
New York Times 01/30/2011
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us