Abstract:
The merger of the two German states brings together countries with divergent economic systems, different trade orientations and a rift in terms of wealth. Transforming the East German system into a social market economy raises enormous internal and external adjustment problems in a period in which West Germany already faces the challenges of the EC 1992 project and European Monetary Union. German unification reinforces concentration tendencies and protectionist tendencies that will contribute to imperfect competition processes in Europe and the global economy.