After World War II, Germany was divided into East Germany and West Germany, which were occupied by the Oriental Group and the capitalist camp respectively. After the drastic changes in eastern Europe, Germany was formally unified. However, after reunification, a problem emerged. The economic systems of East Germany and West Germany are completely different, the competitiveness of enterprises is very different, and the economic development between the east and the west is unbalanced, which eventually leads to a serious social crisis. In order to solve this social problem, the measure taken is to privatize the state-owned enterprises in East Germany.

For this reason, Germany set up a trusteeship bureau, and plans to complete the privatization reform of state-owned enterprises within four years, but still emphasizes that stability is the first priority of reform. Privatize employees of state-owned enterprises, but at the same time give those workers who have been cleared employment opportunities, and they cannot be eliminated.

The process of privatization of the original assets of state-owned enterprises must be open and transparent. The government implemented different privatization schemes according to the different conditions of state-owned enterprises in East Germany. If it is determined to be bankrupt after evaluation, it will be directly included in the bankruptcy procedure; Those with good performance are put on the market and sold by auction; Important enterprises related to the national economy and people's livelihood were taken over by the state.

The German government has also given a lot of policy and financial support for starting a business in East Germany. Each state has set up economic rationality committees to provide relevant consulting services for the development of small and medium-sized enterprises. First-time entrepreneurs are more likely to get small loans and government financial support from banks.