Explain the relationship between the unification of Germany and economic development.

The economy of the GDR lagged significantly behind its western neighbor in terms of development. This was due to the enormous influence of the USSR and its ideology. Private business was not very welcomed. From the moment of the merger, significant investments were required in the affiliated part. A significant part of the equipment required modernization and replacement. In order to cover the costs, the “Solidarity Tax” was introduced. Tax revenue is estimated at billions of euros. The common economic space, currency union, support from the former FRG in a short time allowed to bring the eastern part to the level of the western one. New enterprises have been built, many jobs have been created. They all fill the budget in the form of taxes. We can say that Germany has become 2 times more powerful and stronger. This applies not only to the economy, but also to the military and political spheres.