German village auctioned off - Haves and have-nots

WHEN most of us think of today’s Germany, we picture a united and unified country that enjoys widespread prosperity as a result of being the economic powerhouse of Europe.

Irish Examiner Editorial

WHEN most of us think of today’s Germany, we picture a united and unified country that enjoys widespread prosperity as a result of being the economic powerhouse of Europe.

We might imagine that, unlike countries in southern Europe, there is little by way of widespread disparity in wealth and that it is a very equal society.

In fact, as a recent extraordinary auction reveals, there are huge economic inequalities in the country. The whole village of Alwine has just been sold for €140,000. It is only 120km from Berlin but it has no local industry and few jobs.

Alwine is not the only poor community in eastern Germany, which still lags behind the west in prosperity, wages, and jobs, with a per capita GDP that is less than 70% of that in western states.

Little wonder that Chancellor Angela Merkel, who was born in East Germany, shows little sympathy for other European states that suffered harshly during the recession and who blame Germany for the EU’s austerity policy.

Germans also endured austerity but it was self-imposed and before the recession. In 2002, the government brought in measures to boost competitiveness. These consisted of sharp cuts to unemployment benefits, making labour more flexible by weakening the trade unions, reducing social security and pensions, and raising the age of retirement from 65 to 67.

Inequality abides — even in Germany.