Hans Modrow, a respected communist reformer and mayor of Dresden, became Prime Minister of the GDR, leading a coalition "government of national responsibility" until multiparty elections were held in March 1990. However, the East German economy continued to deteriorate. 1,500 people moved to the western lands every day, the number reached 344,000 in 1989, and strikes began. Surprisingly, in March 1990, the East German three-party alliance, in which the CDU was in the majority and led by Lothar de Maisire, a Protestant lawyer, won the elections in the GDR. He announced an immediate unification with Germany and entered into negotiations with the government of Bonn for this purpose. With the support of the USSR and the USA, whose consent, as the countries that occupied the territory after the war, was necessary, this goal was achieved on October 3, 1990 with the transfer of the official capital to Berlin. The new FRG remained part of NATO, and in response to Germany's promise to reimburse the USSR, Russia agreed to withdraw all troops deployed in Germany under the Warsaw Pact by the end of 1994.
This agreement was approved, and the last Russian troops left Berlin in August 1994.
Before the political unification, on July 1, 1990, the German Economic and Monetary Union was established, which determined the ratio of the currency of the West and the East as 1:1 and established a trust fund in March 1990 to oversee the privatization of 8000 state-owned industrial enterprises. Unification was achieved by the GDR joining Germany and adopting its existing political institutions, although new land constitutions were adopted and approved in referendums of the eastern lands in 1990-1994. As a result, six more lands with a population of 17 million people were added. Elections in these new lands were held on October 14, 1990, which replaced 14 regions and where the right-wing center received strong support. Two months later, on December 2, 1990, the first all-German general elections were held after 1932. Christened by the people as the "chancellor of unification," Helmut Kohl, who developed the unification program in early December 1989, and his ruling CDU-CSU-FDP coalition won a landslide victory, receiving 55% of the vote. But the new coalition government was to consist of three East German politicians. The SDP, led by the charismatic Saarland minister-President Oscar Lafontaine, lost support in these elections, as did the Greens, who did not overcome the 5% electoral barrier in the western lands.
As predicted by the SDP, Chancellor Kohl's "honeymoon" was too short. In 1991-1992, serious problems arose in ensuring the economic and social integration of the eastern lands, where the per capita income was half that of the western one. Many enterprises had an excessive number of employees, technologies were outdated, and they were recognized as non-marketable as a result of the destruction of the communist economy. Hundreds of thousands of East Germans found themselves out of work, as economic restructuring caused a 15-20% decline in East German GDP in 1991-1992, and a third of the workforce was unemployed or temporarily unemployed, more than 90% of East Germans felt like second-class people. This fueled anti-Kohl protests in Leipzig and Dresden in March 1991, followed by neo-Nazi racist riots.
They were especially evident in places where political refugees congregated, which were subjected to particularly severe attacks, such as in August 1992.. The position of Chancellor Kohl deteriorated in the western lands in 1991-1992. This was due to the fact that he did not fulfill the commitments made during the election campaign, first of all, not to raise taxes in order to pay for the annexation of East Germany. In addition, there was an increase in interest rates when inflation reached 4%, the budget deficit increased and the economy of West Germany stagnated, and the unemployment rate reached 7%. The stagnation in the country's political life, caused in part by the increase in interest rates in Germany, which negatively affected the European exchange rate mechanism, only worsened the situation. Kohl's defeat in the elections in his native land in April 1991 meant the loss of the CDU majority in favor of the SDP. Since October 1990, the CDU has held the majority in the Bundesrat.
The number of CDU supporters also decreased in the March 1993 elections in Hesse, where 8% of the vote was won by extremist Republicans. The pressure forced the Government to tighten restrictions on the admission of political refugees. In general, despite the fact that the East German economy grew by 6% compared to the 2% decline in the West German economy, 1993 was a year of disappointment and dissatisfaction with politics. Nevertheless, in March 1991 Kohl held talks on the future allocation of funds in a united Germany, which were also attended by the head of the SDP Bjorn Engholm and the ministers-presidents. This agreement provided for the allocation of a larger amount to the budget in the form of value-added taxes for the development of the regions, and consequently, a reduction in financial transfers from western lands to eastern lands after 1995 and the establishment of an income tax rate of 7.5%, the proceeds of which could make up for the lack of funds in the federal budget. Linebet has quickly gained popularity thanks to its competitive odds, wide sports coverage, and generous welcome offers. If you are looking to start your betting journey with maximum value, choosing the right promo code is essential. At the heart of the most attractive promotion currently available is the linebet promo code during registration and making your first deposit, you receive a 100% welcome bonus up to $100. This extra balance helps you dive deeper into sports betting, live events, and virtual sports with greater confidence.