DDP Coal mining, once a major industry in the East, is slowly dying out. The true outcome of an economic process that to this day continues to be candy-coated as 'Development East' is devastating.

Ironically, the East, in addition to having the power to decide the election, will also play a decisive role in shaping the entire country's short-term economic future. For many western politicians, the money pit of East German reconstruction has long since turned into a dangerous burden. It should, of course, be mentioned that the political and administrative reforms made in the East have largely been successful.

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Reforming and rebuilding the judiciary in the East has worked well as has the reconstruction of government administration. The East's cultural heritage has been rescued, western environmental standards have been implemented in the East, police investigations in the eastern state of Mecklenburg are now not dissimilar to those in Bavaria, and the East has in many cases outpaced the West when it comes to the quality of higher education. But despite these advances, the East's social framework lacks an adequate economic base. To this day, the East is still unable to survive without government subsidies amounting to some €70 to €80 billion a year. And it gets worse.

According to the German Institute for Economic Research (DIW), economic aid for the eastern part of Germany is increasingly dragging down the economic cycle in western Germany. Experts warn of a growing risk that 'development in the new federal states' could trigger a 'self-fuelling recession.' It was only last year that a team of government consultants, headed by former Hamburg Mayor Klaus von Dohnanyi and the former head of the East German state bank and subsequent managing director of Deutsche Bank's Berlin office, Edgar Most, presented Manfred Stolpe (SPD), the cabinet minister charged with eastern reconstruction, with a 29-page report ('Recommendations for a Change in Direction for Development East') outlining the full scope of the problem. Experts complain that: • only about 60 percent of eastern Germans capable of gainful employment are in fact employed. The average unemployment rate in the region tops 18 percent. According to the Institute for Economic Research in Halle, eastern Germany is short of about 2 million jobs; • migration away from the East continues unabated, especially among young people. The Fakir Ruzbeh Bharucha Ebook3000.

According to the Dohnanyi report, 'eastern Germany is threatened by a dramatic aging of the population and a dangerous loss of especially well-trained workers and its creative force'; • the economy in the new German states has been growing more slowly than in the West for years. The catch-up process has stalled, leading to an ever-widening gap between East and West; • the East lacks medium-sized businesses when compared with the western standard. Companies in the East are generally too small and short on capital; • the costs of reunification consume four percent of the gross domestic product annually.