Big Bet on Land in East Haunts Germany's Banks

THE WALL STREET JOURNAL ^ | Tuesday, August 5, 2003 | MARCUS WALKER

[presidio9]

Of all the problems hobbling Germany's efforts to climb out of recession, one of the most persistent stems from land, such as the overgrown fields outside this village south of Berlin.

They once belonged to potato farmer Friedrich-Wilhelm Ziedrich and his cousin, who were too old to work the soil. The two sold the 300 acres in 1991 for $65 million (€57.7 million) to Bayerische Hypo-Bank of Munich, which had its eyes on the nearby moribund airport of the old East Berlin.

[presidio9]

WIDE DIVIDE

Economic disparities in eastern and western Germany.

Statistic East (a) West Population (in millions) 17.1 65.3 GDP per capita (b) $20,223 $31,066 Unemployment 18.70% 8.40%

Average GDP Growth

Region Year Growth West Germany 1974-1990 2.40% United Germany 1991-2002 1.10%

(a) Including Berlin (b) Converted from euros at current rate

Sources: Bundesbank; German Federal Statistical Office; Halle Institute for Economic Research; WSJ research

[Jhensy]

My mom's a Berliner. I was always amazed at how once you leave the city itself, there's nothing but endless wheat fields and giant farms stretching into infinity. Even after the fall of the wall, Berlin is truly an island with no major city nearby.

And my Mom's greatest wish, along with every other old-time West Berliner, is for someone to rebuild the Wall again. Twice as high this time.

[Restorer]

"My cousin said, 'Oh, but our lovely land,' " recalls Mr. Ziedrich, who turns 80 this year. "I said, 'You try sitting on a tractor and ploughing it.' "

I wouldn't obesss very long about selling the land for that price!

[y2k_free_radical]

REALLY ?