ABSTRACT .

This report is about the German economy. First of all it contains an account for the socio-economic situation in the previous DDR and the German Federal Republic. The two states had two different economies. DDR had a planned economy and the German Federal Republic had a market economy. On 9 November 1989 the government from DDR announced that it now was possible to visit West Germany. Now DDR could be a part of the West Germany. Afterwards the report contains an anal-ysis of the differences in the German economy and the cultural differences in Germany after the reunification. The focus is at the high unemployment. In short the reason for the high unemployment is an inflexible labour market because of a passive labour market policy. The next is about how much the different states contribute to the growth and how high the unemployment is in East – and West Germany. West Germany is still the richest part of the country and the unemployment is still highest in East Germany. In the future Germany have to work for at more flexible labour market to bring down the unemployment.

This report is about the German economy.First and foremost it is an account of the socio-economic situation in the former DDR and the GDF, including the fact that  the two states had two different economies.