16 years after the fall of the Berlin Wall Germany still has not overcome the economic consequences of partition. Optimistic predictions of a quick adjustment of economic powerin East and West did not come true. Differences between East and West and between dynamic and stagnating regions have been growing again since the mid-1990s. How does economic restructuring take place in different parts of the Federal Republic of Germany? Which regions are the winners, which could be the losers?

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The historic transformation process after 1989/90 in Germany has dramatically changed the rural areas of the new “Länder”. In no other German region is the reduction of jobs and unemployment as high as in the eastern states. But rural areas of “old” Germany have been transformed as well, though in a different way.

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In the first half of the 1990s urban development policies in Germany were determined by growth options. Unfavourable demographic and social-economic conditions, however, had an increasing negative impact on cities and their urban structures in the eastern part of the country. This essay focuses upon several key aspects of urban change in Germany, in particular, the preconditions and characteristics of city growth and shrinkage, and the strategies deployed for urban restructuring.

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With the reunification of both German states and the decision to (re)establish the seat of government in the old capital city, expectations were high that Berlin would be soon again one of the world’s top cities. But economic development progressed slower than expected and unemployment and poverty increased. Outmigration to the surrounding municipalities in Brandenburg state and immigration from Eastern Europe caused a new intensity of ethnic and social segregation.

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After the reunification of Germany in 1990, the region of the newly founded Freistaat Thüringen (Free State of Thuringia) once again occupied a central location in Germany. However it rapidly became apparent that even though an advertising slogan proclaimed the state "Germany's strong center," the region lacked economic power. The following article discusses the virtual seesaw of Thuringia between center and periphery, as well as the ways in which the region has tried to take advantage of its geographical location since German reunification.

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