<P> Discussions immediately began on an emergency merger of the German economies . On 18 May 1990 , the two German states signed a treaty agreeing on monetary , economic and social union . This treaty is called Vertrag über die Schaffung einer Währungs - , Wirtschafts - und Sozialunion zwischen der Deutschen Demokratischen Republik und der Bundesrepublik Deutschland ( `` Treaty Establishing a Monetary , Economic and Social Union between the German Democratic Republic and the Federal Republic of Germany '' ) ; it came into force on 1 July 1990 , with the West German Deutsche Mark replacing the East German mark as the official currency of East Germany . The Deutsche Mark had a very high reputation among the East Germans and was considered stable . While the GDR transferred its financial policy sovereignty to West Germany , the West started granting subsidies for the GDR budget and social security system . At the same time many West German laws came into force in the GDR . This created a suitable framework for a political union by diminishing the huge gap between the two existing political , social , and economic systems . </P>
<P> Discussions immediately began on an emergency merger of the German economies . On 18 May 1990 , the two German states signed a treaty agreeing on monetary , economic and social union . This treaty is called Vertrag über die Schaffung einer Währungs - , Wirtschafts - und Sozialunion zwischen der Deutschen Demokratischen Republik und der Bundesrepublik Deutschland ( `` Treaty Establishing a Monetary , Economic and Social Union between the German Democratic Republic and the Federal Republic of Germany '' ) ; it came into force on 1 July 1990 , with the West German Deutsche Mark replacing the East German mark as the official currency of East Germany . The Deutsche Mark had a very high reputation among the East Germans and was considered stable . While the GDR transferred its financial policy sovereignty to West Germany , the West started granting subsidies for the GDR budget and social security system . At the same time many West German laws came into force in the GDR . This created a suitable framework for a political union by diminishing the huge gap between the two existing political , social , and economic systems . </P>
the first step in the reunification of east and west germany was uniting their
the first step in the reunification of east and west germany was uniting their
economies
economies