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- WORLD, Page 54THE GERMANYSThe Honeymoon Is Over
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- Amid fears of economic chaos, the East embraces unity -- but not
- without qualms
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- Like two lovers confronted by the practical realities of
- marriage, East and West Germany are having a bout of prenuptial
- nerves. Though the two countries will not formally tie the knot
- until Oct. 3 -- the earliest practicable date -- the euphoria
- of unification has given way to a summer of unemployment,
- rising prices and political disillusionment. Both sides remain
- firmly committed to the merger, but East Germans have begun to
- fret over the economic disintegration of their country and West
- Germans worry about the price of preventing it.
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- The growing discontent in the East was manifest last week
- when more than 45,000 municipal workers in East Berlin,
- Magdeburg, Chemnitz and other cities staged two-hour "warning
- strikes" to support calls for higher pay, job security and
- preferential tax treatment in a united Germany. For the second
- time in two weeks, public transportation was crippled and
- garbage trucks blocked the entrances of department stores, as
- bus drivers joined sanitation workers, nurses and secretaries
- for rallies in at least 10 cities. The demonstrators complain
- that their salaries, which average about half those in the
- West, are not enough to cover the higher prices being charged
- for food and other basic items since July 1, when the West
- German mark became the official currency of both Germanys.
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- The striking workers are demanding preferential personal-tax
- treatment until their economy rises to Western levels. West
- German income taxes average about 33%, in contrast to about 5%
- in the East. East Germans are also angry that a flood of West
- German investment, which Chancellor Helmut Kohl promised during
- last spring's election campaign, has failed to materialize. The
- lack of capital, plus competition from Western products, is
- wiping out East German companies and farms. Unemployment
- reached 350,000 in August and continues to rise at a rate of
- 25,000 a week. The International Policy and Science Institute
- in East Berlin predicts that 2 million of East Germany's 8
- million workers will be out of a job by the end of the year.
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- Some European analysts have suggested that West German
- investors are waiting for the East German industrial base to
- collapse so that they can make a fresh start, rather than prop
- up inefficient or outmoded businesses. East German leaders, for
- their part, have pointed out that however rough the transition
- may be, their country's economic prospects remain brighter than
- those of Central European nations like Poland and
- Czechoslovakia. "If we show courage and behave responsibly, we
- will be out of the woods soon," Prime Minister Lothar de
- Maiziere said in Halle last week.
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- But not all East Germans are convinced. Kohl's campaign
- speech to the same Halle audience was interrupted by shouts of
- "liar" and a hail of tomatoes and eggs hurled by a group of
- leftist protesters. Security guards used umbrellas to deflect
- the missiles, and Kohl did his best to turn the incident to his
- advantage. "If you want to see the result of 40 years of
- communist rule," he said, "just look at these hooligans with
- blind rage in their faces. A vote for the Communists is a vote
- for violence and state terror."
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- Despite a fundamentally strong economy, some West Germans
- are becoming disgruntled as well at the rising costs of
- unification. Bonn's budget deficit this year is expected to
- reach $42 billion, vs. $11.3 billion last year. The cash drain
- reflects the assumption of responsibility for East German
- pensions, unemployment benefits and public utility subsidies
- and for the debt of state-owned enterprises. Within the past
- six weeks, stock prices have fallen 15%, partly because of the
- Persian Gulf crisis but mainly because of the anticipated
- pressures of unification. Inflation is projected to surpass 3%
- by the end of this year, uncomfortably high by German
- standards. "Nowhere between the north coast and the Alps in the
- south is anybody counting the days in joyous anticipation of
- unity," said Manfred Volkmar, a columnist for Berlin's
- Volksblatt. "The few weeks left are turning into a nightmare."
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- Some potentially divisive issues were ironed out last week
- when the two Germanys codified their coming unification with
- a 1,000-page state treaty signed in East Berlin's Palais Unter
- den Linden, the former residence of Prussia's crown princes.
- The treaty reconciled many of the disparities in law between
- the two governments but left for later a number of others,
- including abortion, which is sharply restricted in the West but
- still available on demand in the East. The two Germanys will
- keep their respective abortion regulations until a united
- German government can draw up a new law.
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- Meanwhile, the majority of Germans seem to agree that the
- final result of the transition is worth the trouble. In the
- end, the discomforts of unification are a minor price to pay
- for bringing an end to 45 years of division, hate and
- ideological confrontation.
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- By Guy D. Garcia. Reported by James O. Jackson/Bonn.
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