Moreover, the beginning of the governmental move to Berlin in the late 1990s did not manage to pull the city out of the economic doldrums that had set in after the reunification boomlet. In 1998 Berlin’s economy actually declined by 0.3 percent, registering the worst performance of any German region. Bankruptcies were about double the national rate. Industrial production continued to fall, while the unemployment rate climbed to 18 percent, almost eight points higher than the national average. Some 275,000 Berliners were receiving public assistance. Of the top hundred companies listed on the Dax, the Frankfurt-based stock exchange, not one decided to shift its headquarters to Berlin. The only Dax-30 company to have its main office in the capital was Schering, which had been in Berlin since its foundation. Berlin was rebuilding the old Lehrter Bahnhof to become Europe’s largest train station, but the city was anything but a hub of air transportation. By 1998 the number of intercontinental flights to Berlin had declined from fifteen to three: Ulan Bator, Singapore, and Havana. Lufthansa had reduced its flights to the city, and the big American airlines had stopped flying there altogether. To help the city adjust to its new responsibilities, the European Union promised DM 2 billion in aid for the period from 2000 to 2006, but as a condition for the aid it demanded that Berlin finally put its economic house in order and offer a plan for sustained renewal. Lamentably, the town’s political establishment showed no signs of being able to come up with such a plan, nor did it work to stimulate initiative in the private sector by stripping away the outdated business regulations that had stifled initiative for years. “Leere Kassen, leere Köpfe (empty treasury, empty heads)” is the harsh phrase that one local expert employed to sum up Berlin’s political-economic situation in late 1999.
United Berlin’s cultural scene—as often in the past—provided something of an exception to this empty-headed theme: once again a wealth of cultural offerings constituted the city’s strongest suit. Reunification allowed the old/new capital to consolidate, rationalize, refocus, and renovate its cultural institutions, which had previously been split between East and West. In this domain, at least, few would deny that the new Berlin was a genuine
For Berlin’s vaunted art museums, reunification meant reuniting collections that had been dispersed during the war and then arbitrarily divided by politics. No longer was it necessary, as it had been during the Cold War, to make complicated exchanges—cultural equivalents of the famous spy swaps—to reassemble key collections or to return well-known treasures to their original locations. Shortly after the