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35 Years After Reunification, Germany's East–West Divide Endures

New official findings underscore how limited inherited wealth still shapes young eastern Germans' prospects.

Overview

  • Federal commissioner Elisabeth Kaiser presented her first annual report on Oct. 1, concluding that many who grew up after 1990 still identify as “Ossis” and face distinct life paths.
  • Destatis data for 2024 show inheritance and gift taxes on more than €106 billion in the West versus under €7 billion in the East including Berlin, roughly €1,600 per capita versus €400.
  • The former East, excluding Berlin, has lost about 2 million residents to migration since 1990, a 16% decline that compounds aging and service gaps.
  • Fiscal transfers now cover about one-third of eastern state budgets, down from roughly two-thirds in the 1990s, reflecting persistent structural disparities.
  • Economist Wolf-Fabian Hungerland says unresolved resentment and divergent historical memory help explain stronger AfD support in eastern states.