The transformation of East Germany has changed the economy and society and left deep scars, as the types of social protection offered by the centralized socialism of the previous regime gave way to uncertainties and individualized life chances. While many faced labour market exclusion through unemployment or early retirement, others enjoyed higher incomes and improved employment prospects. As the productive economy, infrastructure and housing are going a rapid and costly modernization to Western standards, the transition to market principles and a risk society, generates winners and losers.

The transformation of East Germany has changed the economy and society and left deep scars, as the types of social protection offered by the centralized socialism of the previous regime gave way to uncertainties and individualized life chances. While many faced labour market exclusion through unemployment or early retirement, others enjoyed higher incomes and improved employment prospects. As the productive economy, infrastructure and housing are going a rapid and costly modernization to Western standards, the transition to market principles and a risk society, generates winners and losers.

The unification of Germany extended the economic and political system of the West to the East. This led to a "problematic normalization" as East Germans adjusted to uncertainties in employment, education, family life and immigration. This work considers the problems of the socialist legacy.