The economic integration of Germany is a massive undertaking. The economies of the FRG and the GDR had very different structures and were clearly at different levels of development. The process of integration involves a period of structural adjustment that will continue for some time. It has enormous implications for the global economy, and for the European Community in particular. The Economics of German Unification examines the most important issues in this transformation process. Having discussed how the unification treaty was arrived at, it looks at the implications for the key sectors, including manufacturing agriculture and services. The international dimension is also vital, and this is considered both in monetary terms and in terms of international trade flows. Finally, a chapter addresses the relationship between wages, productivity and employment, a crucial question as enterprises in the East struggle to compete with the most efficient manufacturing sector in Europe.