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Minister: former East Germany needs a trillion

The Local · 3 Sep 2012, 09:42

Published: 03 Sep 2012 09:42 GMT+02:00

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Matthias Machnig of the centre-left Social Democratic Party (SPD) is calling for that cash to invested over the next 18 years, as part of his proposed "Strategy 2030," the business daily Handelsblatt reported.

“Two decades of reconstruction in the East have been worthwhile,” Machnig told the paper. “But it is nevertheless clear that the process of catching up has been exhausted to a certain degree.”

Machnig also called on the federal government to "rediscover" eastern Germany, basing his statements on the “Future East” report, issued by the international consultancy Roland Berger.

That report found that the former communist East Germany needed €1,000 billion in new investment to close the equity gap with the western part of the country by 2030.

It challenged the eastern states not to hesitate from demanding assistance from the federal government and the western states to help build up its regions with weaker infrastructure.

Roland Berger's CEO Martin Wittig also called on all states to make a joint effort in supporting the former East Germany, the Handelsblatt reports. “Then it would be realistic that the catching up could be achieved by 2030,” he says.

Story continues below…

The Local/mbw

The Local (news@thelocal.de)

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Your comments about this article

01:19 September 4, 2012 by zeddriver
Communist east Germany no longer exists. How can it need anything. It's now part of Germany at large.

Same old story retold in so many new ways these days. And just what is that story. In a nutshell. Gee. If you or someone was to GIVE me someone Else's money I could be successful to.

I bet if someone gave me a trillion Euro's. I could make a marketable hydrogen car that doesn't pollute. Of course if I was asked what my business plan was, And if I have any knowledge of hydrogen cars, Or if I had all the proper permits in hand. Then I might look stupid.

The same with this guy. What's his plan? Other than. "just give me a trillion" Then you'll see. If the eastern part of Germany had something to offer companies. Such as an educated workforce, Tax breaks for relocating a factory there. They would come.
05:42 September 7, 2012 by schneebeck
"It challenged the eastern states not to hesitate from demanding assistance from the federal government and the western states to help build up its regions with weaker infrastructure"

It has been 20 years since reunification. 2030 is 20 years from now. Haven't the western states been paying a special tax to support the east all this time? Someone correct me if I'm wrong.

Haven't people of the western states been somewhat resentful of having to support the east? Or was that resentment not so prominent.

And this guy says, "do not hesitate to demand money from the government and western states", for another 20 years!
01:47 September 11, 2012 by stablemate
yes its true east needs more money....everyone does.....but now is not time.....must bail out friends south of border....that joined the euro. 20 yrs ago...keep debt down and look for better times ahead
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