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East German Sees Economic, Social, Monetary Merger in Eight Weeks

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From Associated Press

East Germany’s prime minister today said the Germanys may merge their economies within eight weeks, but he demanded that West Germany pay a bigger price for unification.

Lothar de Maiziere also said East Germany will defend the military interests of the Soviet Union but will still pursue the quick path to unification that Moscow opposes.

De Maiziere, in his first speech to the freely elected Parliament, said a final plan for a single Germany could be in place before Parliament breaks for the summer.

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“In the next eight to 10 weeks we will lay the foundations for the economic, monetary and social union so that this union can enter into force before the summer break,” he said.

He said East Germany must be an equal partner in the talks and that the nations “must agree on conditions that ensure East Germans do not get the feeling of being second-class German citizens.”

While a single currency and shared social and economic institutions could be in place, long negotiations are expected on the process of fully unifying the governments and creating a single nation. The process is not expected to be completed until next year.

De Maiziere reiterated that most East German marks, which are virtually worthless, must be traded at a 1-for-1 rate to the powerful West German mark when a single currency is created.

But the vice president of the West German central bank, Helmut Schlesinger, was quoted as saying a 1-1 exchange could lead to higher inflation in West Germany.

De Maiziere said he is concerned that there is less willingness to help among West Germans who are fearful that inflation and higher taxes may be the price for bailing out the collapsing East German economy.

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“We are not demanding sacrifices from you,” he said. “What we expect is togetherness and solidarity. The division of Germany can only be lifted by sharing.”

De Maiziere, chosen as prime minister last week, also said most of the remaining sections of the Berlin Wall will be torn down to symbolize the end of 40 years of oppression.

He said one section will remain as a “historical monument.”

De Maiziere favors a form of unification in which the West German constitution would become the constitution of East Germany. Some German politicians in both states favor a slower pace that would require a new constitution to be written.

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