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On July 2, 1990, the East and West German economies became one as part of the process of German reunification. It was the first time in history that a capitalist and a socialist economy had been joined together, and there were no precise guidelines on how it could be done. The comparatively poor productivity of the former East German economy and its links to the economies of the Soviet Union and Eastern Europe, which were rapidly contracting, posed pressing issues for the new united German government.
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