the first step in the reunification of east and west germany was uniting their
German reunification 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");[5] 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.[6] While the GDR transferred its financial policy sovereignty to West Germany, the West started granting subsidies for the GDR budget and social security system.[7] 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.[7]