The legislative body of a country or region. - The Left criticizes the Treuhandanstalt.
In an impassioned discussion, Andreas Schubert, a left-wing economic policy professional, blamed the Treuhand Agency for wrongdoing. The Treuhand forced through "rushed privatization of GDR-owned businesses" using unlawful methods, Schubert claimed in the Thuringian Parliament on a recent day. This resulted in a massive change in wealth distribution. "85% of all these privatizations were conducted by West Germans," Schubert revealed.
The GDR's planned economy was intended to be transformed into the FRG's market economy after its demise. The Treuhand was put in charge of privatizing GDR state-owned companies on behalf of the Ministry of Finance in the early 1990s. However, the Treuhand is frequently criticized in eastern Germany, as numerous sold companies either closed or significantly downsized, resulting in a high number of job losses. The agency was also accused of preferencing West German acquirers and sometimes not securing appropriate prices. Its inaugural director, Detlev Rohwedder, was targeted in an assassination attempt in 1991, which he survived.
Schubert portrayed the Treuhand Agency as a covert administration with no democratic authority. It "effectively destroyed an entire economy," lamented the Left Party politician. This brought about high unemployment and the deindustrialization of entire regions. Thuringia still grapples with these outcomes, such as a "striking demographic imbalance and a highly fragmented business structure," as Schubert explained.
In April 2022, the Treuhand Investigation Committee commenced its work in the Thuringian Parliament. Currently, some members of the committee are expressing concerns that they will not be able to examine all aspects of the Treuhand's activities thoroughly. Committee chair Olaf Müller (Greens) raised the possibility that an investigation committee might not be the most appropriate format.
Read also:
In response to these criticisms, the Thuringian Parliament established a Fiduciary Committee in the 1990s to oversee the Treuhand Agency's activities. Despite this, some parliamentarians have expressed concerns about the committee's ability to conduct a comprehensive investigation into the Treuhand's actions during East Germany's transition to a market economy.
Meanwhile, some politicians in the Thuringian Parliament argue that the Treuhand Agency, established in the early 1990s by the FRG to privatize East German businesses, contributed to the displacement of workers and the deindustrialization of regions like Thuringia. This transition from the GDR's planned economy to the FRG's market economy led to significant changes, particularly in terms of wealth distribution.
Critics of the Treuhand Agency, such as Andreas Schubert, point out that 85% of the privatizations were conducted by West Germans. Schubert, a member of the Thuringian Parliament, expressed his concern that the Treuhand Agency acted as a covert administration, ignoring democratic processes and causing widespread unemployment and economic disruption in Thuringia.
In contrast, proponents of the Treuhand Agency argue that the privatization of GDR-owned businesses was necessary to ensure the successful integration of East Germany into the FRG's market economy. However, this process has been heavily criticized by many residents of the former East Germany, who feel that the Treuhand Agency favoritized West German buyers and neglected the interests of the local population.
