Economy:
Reunification of the city brought mixed blessings in terms of Berlin's economy. Unemployment for example, has been a significant problem, exacerbated by the closing of inefficient East German industries. At the same time, however, the city has benefited from massive private and public investment aimed at modernisation and the integration of infrastructure. As a result, Berlin now has the best communications network in Germany. This kind of investment, estimated to reach in excess of EUR 100 billion by 2003, creates its own difficulties though and has left the city in huge debt. Following reunification increases in spending outstripped increases in income by 3 per cent and the interest on the resulting debt alone currently requires about a tenth of the city's budget. Measures to limit this problem are being developed however, including reductions in the police force and court system, giving responsibility for the maintenance of major museums to the federal government and negotiating with the unions to save over EUR 460 million a year. It is also possible that the federal government will provide assistance if the city proves it has spending under control.

The economy itself, with a workforce of approximately 1.4 million, has seen a reduction in the prominance of the industrial sector and simultaneous growth in the service, science and research sectors. Primary industries include electrical, chemical and pharmaceutical industries, food processing, heavy machinery and equipment manufacture. Tourism is also on the increase and Berlin is now the most popular tourist destination in the country. More than a third of employees work in the service sector, an increase of nearly 48 per cent since 1989, another third work in manufacturing and industry, about a seventh in trade and transport and nearly a fifth in government. In general, large businesses are in the minority with approximately 94 per cent of companies having less than 200 employees.

The city's economic growth is limited, in keeping with the country as a whole, and unemployment is generally greater than the national average. However, the future is looking brighter. To begin with, manufacturing employment, which fell dramatically after reunification, appears to have levelled off. The city is cheaper and more forward thinking than many in Germany and as a result is encouraging young people to settle there. The city is attracting new firms with tens of thousands registering every year. In 1998, the number of businesses starting up surpassed the number of companies that folded by more than two and a half thousand and this trend seems to be continuing. In the fourth quarter of 2001 alone, there was an excess of nearly 1,500 new companies. Larger prestigious companies including Daimler Chrysler, Sony, Hertie, Berliner Volksbank and ABB have all established operations in the new Potsdamer Platz development. Finally, Berlin's trade with Russia and the Czech Republic increased at a higher than average rate in 2000 and the city is well placed to take advantage of the expansion of the EU, expected to take place in 2004, to include nearby Poland and several other Central European countries.

The city of Berlin is also among the top ten congress cities in the world and is home to Europe's biggest convention centre in the form of the Internationales Congress Centrum (ICC). The ICC is some 320 metres long, 80 metres wide and 40 metres high and contains 80 halls and rooms seating between 20 and 9,100 people.

Local Infrastructure:
Access to the city of Berlin is well provided for via a highly developed transport infrastructure. There are currently three major international airports serving Berlin, comprising Tegel, Tempelhof and Schönefeld, which cater for over 12 million passengers a year. In 2007, construction of the new Berlin Brandenburg International (BBI) airport is due to be completed and promises to transform Berlin into a major centre of international air traffic. Work is underway on the new Lehrter Railway Station, which is expected to handle nearly a quarter of a million passengers a day from 2005. The station will be a meeting point for ten long distance routes on the European high-speed network. The motorway ring that surrounds Berlin has connections to five further motorways, making the city easily accessible from all parts of the country. Work is underway to widen many of the roads that constitute this network.

The local transport system is very efficient and prices are moderate. As testament to this fact, it is extremely popular with residents and only about 56 per cent of households in Berlin have a car. Modern comfortable trains that require less energy to run than their original 1930s counterparts have largely replaced the S-Bahn (Rapid Rail System) trains. The network and the stations have also been undergoing significant refurbishment. Several of Berlin's underground lines are undergoing modernisation and some are being extended. Several of the tram routes are also being extended.

Cargo transport is a significant feature in the Berlin region and growing annually. This is facilitated by three main centres on the outskirts of the city dedicated to providing an interface between mainline and local traffic and several centres within the city to enable localised delivery. Eight million tonnes of cargo are expected to pass through these centres anually by 2010.

The city of Berlin has a state of the art information and communications infrastructure resulting in part from the renewal of all telephone cables following reunification. Thus, Berlin has had a fully digitised exchange network since 1997 and is home to Europe's largest cable television network.

Local Workforce:
Berlin is a youthful city and over half of the working population are less than 40 years of age. The education level of the working population is relatively high with nearly half being classed as skilled workers and more than a third having graduated from an advanced school. There are three large universities in Berlin with a combined student population approaching 120,000.

Legislation governing working hours in Berlin and the country as a whole is modern and forward thinking, allowing a great degree of flexibility.

Standard of Living:
The general standard of living in Germany is very good, with per capita GDP amongst the highest in the European Union at over EUR 24,000.

The cultural heritage of the city is second to none and there are more than 160 museums, approximately 150 theatres, 3 opera houses and 8 symphonic orchestras. The Numerous cafes, bars, beer halls and nightclubs located throughout the city cater for all tastes.

The air quality of the city is improving and pollution by SO2 and dust has been reducing since 1976 to about 20 per cent and 60 per percent respectively. The levels of SO2 are comparable in both East and West Berlin. However, the concentration of dust is higher in the Eastern part of the city.

Business costs:
In recent years, the office space rental costs in Berlin have compared favourably with many similar cities around the world. According to a report published in January 2002 by DTZ, one of the world's leading real estate advisory companies, office occupancy costs in Berlin are about EUR 28.30 per square foot per annum. The occupancy cost in London (city) are about EUR 121.26, while in Paris, Frankfurt and Munich they are in the region of EUR 72.54, EUR 69 and EUR 36.32 respectively.