Urban industrial decline has provided a challenge to the traditional policy structures for urban and regional policies in West Germany. Policy responses at the federal level are restrained by the need to maintain a delicate regional balance and limited to incremental adaptations of existing programs. Deeper effects can be observed from nontargetted sectoral industrial policies. The institutional framework of cooperative federalism is now under critical review. As a result, the federal government is likely to limit its future responsibilities in the field of urban development.
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