Honecker to Kohl

Successful transition to the market in Germany is probably more crucial, although no less problematic, than anywhere else in East and Central Europe. The successful German economy has become a "role model of capitalism" for all the former Stalinist regimes of Eastern Europe and it is in Germany that the polarization between East and West has been most starkly accentuated. The east German states must now be successfully integrated into the German economy if the country is to remain stable and play its full role within the European Community. However, with east Germans struggling to pay Western prices, and rising levels of unemployment throughout Germany, it is clear that there are still serious problems ahead. This study examines the reasons behind the unexpectedly rapid collapse of the ruling Communist Party under Honecker's leadership, and the prospects for successful integration of the former East German states into the economy of the Federal Republic.