The transformation of Germany and east central Europe after 1989
The strength of the German economy is often attributed to the shock therapy of the 1990s. But in 1999, the reunited country was considered ‘the sick man of the euro’. Its failings were blamed on the socialist legacy, yet the economic crisis was the result of western decision-making in 1990. Comparison with the economies of Poland and Czech Republic suggests that shock therapy was not the key to Germany’s success.