A growing chasm in wealth distribution between eastern and western Germany is eroding faith in the nation’s democratic foundations, according to Germany’s Commissioner for Eastern Affairs, Elisabeth Kaiser. In a recent commentary published in “Stern” magazine, Kaiser argued that the state must urgently address this disparity, which she believes is fostering a pervasive sense of disadvantage among eastern Germans.
Kaiser highlighted that the issue extends beyond purely financial considerations. “It is not only about material aspects, but also about recognition, respect and a sense of justice” she stated, emphasizing the corrosive impact of perceived inequity on social cohesion. Data indicates the wealth gap has, surprisingly, widened since the turn of the millennium, a concerning trend for a nation striving for equality.
The commissioner’s analysis points to a stark difference in inheritance patterns: not only are inheritances less frequent in eastern Germany, but when they do occur, the sums involved are significantly smaller than those received in the west. This reinforces a cycle of disadvantage, limiting opportunities for wealth accumulation.
Furthermore, Kaiser attributes the problem, in part, to a persistent lack of financial literacy within eastern Germany, rooted in experiences from the tumultuous period of economic transition. She notes a reluctance to engage in investments with potentially higher returns, contrasting this with the growing risk appetite observed among western Germans, who are accumulating wealth at a faster pace.
To rectify this situation, Kaiser is advocating for a significant reform of Germany’s inheritance tax system. “It cannot be the case that we tax inheritances and assets less heavily than wages and salaries” she asserted. The increased revenue generated from such a reform should, according to Kaiser, be strategically invested in the education system, with the explicit goal of fostering greater opportunity and, crucially, more equitable wealth creation across the nation.
Beyond taxation, Kaiser also proposed policies to encourage homeownership, a key driver of long-term wealth. Currently, only 30% of eastern Germans own their homes, compared to 40% in the west, a disparity she believes needs immediate attention through targeted support and incentives. The commissioner’s proposals represent a direct challenge to long-held assumptions about wealth distribution in Germany and signal a growing political pressure to redress the legacy of reunification and its uneven effects.
