East Germany: The Achilles heel of Europe

Why Achilles heel? Because the Bonn government - once the single-minded champion of European economic union - is paralyzed by problems in its own backyard. It has pumped billions of Deutschmarks and man-years of management into its five new Länder, but they show little sign of surviving without life-support. And Germany's slide into recession, in the west and the east, could jeopardize an early move to European economic and monetary union. David Shirreff reports.

On the Potsdamer Platz, which was once a wasteland between east and west Berlin, the contractors have made an inland sea. Cranes and barges shift earth for the foundations of the biggest development site in Europe. Men work below the dam, small and vulnerable as ants, separated from the wall of water by a few inches of steel.

For five years, much of east Germany has been a building site. At first the building stimulated a boom in consumption and construction, but it failed to spill over into productive sectors.

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