Bonn Denies Expecting Collapse of Economy in East Germany
West Germany, pushing for monetary union and political unification with East Germany, stirred up an embarrassing row today over its partner’s economic health.
The trouble started when a senior Bonn official raised the prospect of an imminent East German economic collapse.
Insisting on anonymity, he told reporters: “There are signs that, in only a few days, East Germany could become insolvent.”
It was this prospect, he said, that prompted West Germany on Wednesday to suggest immediate talks with East Germany on a plan to introduce the Deutschmark in the East to shore up its economy.
But official spokesmen for West Germany and for the East German government, led by Hans Modrow, quickly denied that Bonn believed an East German economic collapse was imminent.
Said East Berlin government spokesman Wolfgang Mayer: “As long as the Modrow government is in power, East Germany will not become unable to meet its payment (obligations).”
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