Tougher taxes likely as two-edged reality catches up with Kohl

Article Abstract:

German Chancellor Helmut Kohl announced to the Christian Democratic party annual congress in Dusseldorf in Oct 1992 that taxes might have to be increased before 1995 to cover unification costs, as Germany was going into recession. This was unpopular, so Mr Kohl decided instead that subsidies must come from savings. Eastern Germany has strong economic activity in service and construction, but has massive unemployment. Western German companies Volkswagen, Daimler Benz and Siemens are laying off workers.

Author: Eisenhammer, John
Conferences, meetings and seminars, Political activity, Kohl, Helmut, Christian Democratic Union (Germany), German reunification question (1949-1990)

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An economy fighting for its life

Article Abstract:

The Bundesbank and the German government hope the OTV wage negotiations will set a good example as they need to reduce the rate of inflation from 4%. There are 2.025 million unemployed in west Germany and 1.1 million in east Germany and the number is expected to increase. Advice to limit public spending in the west because of the large subsidies to the east has been ignored. Solidarity pact talks were meant to include measures which would restrict wage claims, but unemployment will force it.

Author: Eisenhammer, John
Unemployment, Government spending policy

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The state returns in the east

Article Abstract:

The German privatisation agency Treuhand provides funds to write off debts and for new machinery for eastern German industrial companies such as the Zwickauer Kammgarn (ZK) worsted thread manufacturer. The preservation policy offers state instruction to help companies struggling to operate in the free market. The Treuhand has established Management KGs as holding companies managed by western Germans to group several core companies which are turned around and sold off.

Author: Eisenhammer, John
Management, Manufacturing industry, Manufacturing industries, Zwickauer Kammgarn

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Subjects list: Economic aspects, Germany
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