Economic stagnation in the 1980s- Economic relations with the FRG

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By 1982, what was the state of the GDR's economy?
Deep economic crisis
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How did the FRG help the GDR whose economy was in crisis?
2 massive loans - DM 1 billion in 1983 and DM 950 million in 1984
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Who was the prime mover within the FRG, who wanted to provide these loans?
Franz-Josef Strauss, right-wing minister president of Bavaria
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What may have been the motivation behind these loans?
the FRG did not want to see the GDR destabilised at a time of problems in central europe i.e in Poland and a return to Cold War tensions with Reagan as president. FRG may have been softened by informal agreements on relaxation of border controls
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How did the GDR use these loans?
As security- by depositing them in banks it made them more creditworthy and by 1984 credit markets were again open to them
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Card 2

Front

How did the FRG help the GDR whose economy was in crisis?

Back

2 massive loans - DM 1 billion in 1983 and DM 950 million in 1984

Card 3

Front

Who was the prime mover within the FRG, who wanted to provide these loans?

Back

Preview of the front of card 3

Card 4

Front

What may have been the motivation behind these loans?

Back

Preview of the front of card 4

Card 5

Front

How did the GDR use these loans?

Back

Preview of the front of card 5

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