Poverty in eastern Germany. Eastern Germany's GDP grew by 1.2 percent per year between 2010 and 2015, underperforming the 1.6 percent achieved by western Germany plus Berlin, Ifo calculated. "Exactly the people with a high level of qualification who could push increased productivity and innovation are lacking," Ragnitz wrote. Most firms in eastern Germany remain small, concentrating on market niches - and are therefore "by definition notable for their limited opportunity to expand". But both EU structural development funds and solidarity payments from wealthier western states are set to dry up in 2020.

Source: The Local August 24, 2016 15:11 UTC