The process of German unification was poorly managed because it happened so rapidly. Photograph: Gerard Malie/AFP via Getty Images
Thirty-five years ago, after 40 years as separate entities, the fall of the Berlin Wall in November 1989 was followed by the formal reunification of the two Germanies in October 1990. This allowed very little time to plan the transition.
The decision to set a 1:1 exchange rate between the Deutschmark and the Ostmark drove up eastern prices and wages. With a single currency and a unified distribution system for consumer goods, the eastern price level, which had been 30 per cent lower in 1990, rapidly rose to western levels.
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