Germany and the Euro

Possible reforms to combat the problems of rebuilding

• Job creation schemes & vocational training programmes
• Create a new sector of low skilled, low pay jobs
• Sacrifice some social benefits in order to cut labour costs and raise competitiveness

Impact of the Reunification on relations with the European Union

Institutional change and Financial implications

• Treaty of Unification expanded the number of Länder to 16 by providing for the accession of the 5 new eastern Länder:
• Brandenburg, Mecklenburg-West Pomerania, Saxony, Saxony-Anhalt and Thuringia. Resulted in an increase in seat allocation in the European Parliament from 81-99 MEPs between 1986-1994.
• Problems with the Exchange Rate Mechanism
• Demands for European Structural Funds
• Demands for a reduction in budgetary contributions