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Business Profile: With the massive task of unifying a capitalist and a communist economic system Germany has had a turbulent time since reunification in 1990. During the Cold War West Berlin was a heavily subsidised (DM8 billion per year) island of capitalism, while East Berlin, under the communist system, had very little private enterprise. In the intervening years, the city has had to deal with massive unemployment, as inefficient East German industries were shut down, as well as a large outlay of resources - to modernise and integrate the infrastructure of the city's two halves (private and public investment is estimated to be DM200 billion by 2003). The emerging city with its forest of skyscrapers may look impressive, but this hides the fact that the city is massively in debt, many new offices lie empty and the rate of unemployment in mid-1999 was 15%, above the national average.

Many in the Berlin business community presumed that the city would emerge as the gateway between East and West, thanks to numerous East Berliners speaking Russian and having a familiarity with the business and social conventions of the former Eastern Bloc, but in reality many international firms have cut out the middle man and saved money by locating directly in Prague and Budapest. However, over the last year or so there has been a new sense of optimism as the colossal building projects seem to at last be taking shape. Berlin has regained the status of capital of Germany and the German economy is again growing in strength. Simultaneously the economic decision-making power is shifting from the Western centre in the Ku'damm area to the new centre around Potsdamer Platz, Unter den Linden and Friedrichstrasse.

Among the big names in the new Potsdamer Platz developments are Mercedes-Benz Daimler Chrysler, Sony, Hertie, Berliner Volksbank and ABB. Key industries include the electrical, chemical and pharmaceutical industries, food processing and heavy machinery, equipment manufacturing and increasingly tourism, with Berlin now Germany's number one tourist destination. Overall, 36% work in the service sector, 33% in manufacturing and industry, 13% in trade and transport and 18% in government.

In terms of convention venues there is the Internationales Congress Centrum (ICC), Messedamm 22 (tel: (030) 3038-0; fax: (030) 3038 2353; website: www.messe-berlin.de). The Berlin Chamber of Commerce are at Hardenbergstrasse 16-18, tel (030) 315 100, fax (030) 3151 0278.

Business Etiquette: Germans are very businesslike while at work and this shows in their expectations for punctuality, formal manners and attention to detail. It is common to answer the telephone by stating one's last name, rather than saying 'hello'. People should be addressed by their title (eg Herr Doktor) and last name, until they indicate otherwise. Many businesspeople speak English, but may prefer to conduct business in German. Likewise, business cards (which are used extensively) and business letters in English are acceptable, but supporting documentation should be translated. It is best to err on the conservative side of dress, certainly in the first instance.

Standard business hours are typically Monday to Friday 0800/0900-1600/1700, although, contrary to what many visitors expect, these hours can be less as Germans have some of the shortest working hours in Western Europe. Meetings are usually between 1100 and 1300 or 1500 and 1700, although late afternoon appointments (other than on Friday) are not unusual. Business lunches are common (the one making the offer is expected to pay), but breakfast meetings are rare.



Copyright © 2001 Columbus Publishing
    
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