German unification immediately exposed and quickly accentuated the eco
nomic gulf that had developed between the separate territories of the
FRG and GDR during the Cold War era. Today, within 'einiges Deutschlan
d', the immense prosperity divide overshadows all previous regional cl
eavages including the north-south economic 'descent' in the West and t
he contrasting urban and rural lifestyles in the East. It dominates th
e geography of Germany's unified space and poses an enormous challenge
to policymakers. This paper examines the principal responses to this
challenge, emphasizing the spectacular quantity of government-promoted
infra-structure modernization in the new Lander, extension of Federal
and EC systems of special regional assistance, and the crucial role o
f the Treuhand industrial restructuring agency. Illustration of post-u
nification regional and sub-regional economic trends is still subject
to the limited range of trustworthy data available for the new Lander;
but reliable area statistics on population migration, population deve
lopment and unemployment rates do permit geographical representation o
f three key indicators. The paper concludes by discussing predictable
longer-term effects, focusing on the salient issues of impacts of indu
strial restructuring in eastern Germany, the 'new centrality' of the f
ormer west-east borderlands, and competition amongst an extended syste
m of urban agglomerations.