Two States, One Voice? : The Integration of the East German Länder into the European Community's Regional Policy

Abstract

This article examines the initial integration of the new East German Länder into the European Community’s (EC) regional policy. Following the reunification of Germany and the concurrent accession of the former German Democratic Republic (GDR) to the EC in 1990, the East German Länder qualified for significant structural funds support due to their weak economy, vast structural deficits, crumbling infrastructure and widespread environmental pollution. Yet, despite these circumstances, the EC excluded the East German Länder from its regional policy until 1994, providing only a symbolic minor sum of assistance. Drawing on recently declassified archival documents, I offer a comprehensive analysis of the political dynamics underlying this decision. I find that the outcome was primarily driven by Chancellor Kohl’s chequebook diplomacy. Concerned that prolonged budget negotiations would delay reunification and provoke an electoral backlash in the upcoming elections, Kohl opposed EC financial support. He vigorously upheld this position against internal opposition and the GDR government. I find no evidence of meaningful attempts by the two German governments to overcome their differences and develop a common position. Other EC member states welcomed the FRG’s rejection of financial assistance so that the Eastern Länder were excluded from the structural funds for three years.