Backdating German neoliberalism: Ordoliberalism,the German model and economic experiments in eastern Germany after 1989

Abstract

Since the 2007–8 financial crisis and subsequent difficulties in the eurozone, Germany’s recent economic history has been much studied. However, less attention has been paid to neoliberalisation in eastern Germany in the early 1990s, when the region became a laboratory for political economic experiments. The results were later spread across the (western) German economy, then into the European Union’s (EU’s) ideological core. As such, a focus on the western ‘German model’ and the EU can miss the way neoliberalism crept into German social and economic life through German re-unification in the 1990s. Re-unification provided conditions in the former East for a ‘natural experiment’ with different modes of economic and social governance – a space of exception from the West German model, whose corporatist features were already fraying in the 1980s. In short, re-unification was a turning point in a drift towards neoliberalism, intensifying moves already quietly under way in West Germany in the 1980s. The contentious nature of this shift has largely been forgotten and sidelined.