"Gloom in the Intermediate World"

Cover story, part one: After fifteen years, the people of East Germany have still not arrived in the Federal Republic of Germany. Many of them still hanker for the conveniences of the former GDR, and have not got accustomed to the principle of personal initiative. The political parties on the extreme left and right are more popular than ever. East German citizens have got to realise that with their revolution they not only got rid of their own state, but also the old West German state. Because that was to some extent a reaction to the socialist GDR, a structure that developed under the pressure of competing political systems. One of the reasons why the social welfare state was made so lavish was so that West Germans too would feel well looked after. This pressure has now gone. In addition, the removal of the Iron Curtain heightened global competition. Now East Germans are finding themselves in a German state that is quite different from what they expected: harsher and less caring. They wanted a light version of the GDR, but instead they are gradually finding they have ended up with a tough version of the FRG.

"The End of the Illusion"

Cover story, part two: The reconstruction of East Germany has been completed; any part of the country that is not flourishing now is likely to remain barren. This insight is gradually spreading within the government. Too much of the 1250 billion euros in aid paid by the West German states has been used up and wasted, too little was invested sensibly. The billions in aid which are still being paid out today primarily serve a socio-political purpose - they are a premium paid towards keeping people quiet, so that the East German states remain politically peaceful until the demographic developments have taken care of the main problems. If the migration away from the East continues at its present level and if the birth rate does not increase dramatically, the aid will ultimately only be shared out to 14 or 15 million East Germans. These demographic developments will even take the sting out of unemployment. At some point, jobless figures in the East should settle down at about eight percent, in other words at the Western level - simply because the proportion of the population capable of gainful employment will drop.

"Afraid of Friends"

German foreign policy: The German government is trying to define its position for the time after the US presidential election. If George W. Bush wins, Germany fears that his next target will be Iran and Iran's alleged atomic weapons programme. If John Kerry wins, he will expect Germany to commit forces in Iraq.

"Early Warning"

Domestic security: An Islamic convention planned for October has the German government in an uproar. Should anti-Semitic and anti-American activists be allowed to meet in Berlin? For both Minister of the Interior Otto Schily and Foreign Minister Joschka Fischer, preventing the convention has become a fundamental question of symbolic importance. Both feel a duty towards Israel - and both fear for the reputation of Germany, if hundreds of radical Arabs gather in the German capital to pass anti-Semitic resolutions.

"The Cape Connection"

Nuclear proliferation: German engineers appear to play a leading role in the black market for nuclear weapons. They are believed to have done the groundwork for Libya's illegal nuclear programme. A German citizen is thought to have contributed to the "black market of horrors" in an important function - as a member of the international network of unscrupulous scientists and businessmen who supply the illegal market for nuclear technology with "fantastic cleverness", as the head of the International Energy Authority (IAEA), Mohammed al Baradei, puts it. On the other hand, Baradei's inspectors are fighting the atomic weapons programmes of internationally outlawed states such as Libya and Iran with Germany's support.

"Big Business in Tripoli"

Libya: The high price of oil is making Mu'ammar al Gaddafi richer by the day. A race has begun between Americans and Europeans to secure the most lucrative deals. Gerhard Schröder, too, is taking a hand in the matter. For years, the under-explored Libya has been considered the most lucrative site in the world for so-called green field projects, the development of largely untouched oilfields. Libya's oil is sweet, i.e. it has a low sulphur content, the distances to be covered in transporting it to Europe are short, and, unlike Iraq and Saudi Arabia, nobody expects terrorism or political upheavals in the desert state in the foreseeable future - in short there is "a bullish mood about business in the people's state", according to the British business service Menas. The position of the Europeans was strengthened during the years of the sanctions, but in future they will have to share once again.

"Grand Failure"

SPIEGEL interview with Erika Steinbach, 60, chairwoman of the Bund der Vertriebenen, an association of Germans displaced during World War II, about the shrill tones now being heard between Germany and Poland, and her proposal of a "zero option" in compensation payments:

"The property issue must be decided conclusively by the policy-makers. It's a question of individual rights, which are unaffected by resolutions or the opinions of associations. … There is a lack of goodwill both in Poland and in the Czech Republic. Unfortunately, it's also largely not in evidence in Germany either. … I need a draft bill. Then I can say whether it includes an adequate moral and symbolic compensation that will pacify people's souls. But I can't do the government's homework for it, nor do I want to."

"Dead-end Wall Street"

Stock exchanges: For many German corporate groups, the prestigious flotation on the New York Stock Exchange has not paid off. But withdrawal is difficult. Now finance minister Hans Eichel intends to come to their aid.

"Scalpel or Knife"

Ukraine: The era of President Leonid Kuchma, who was so often surrounded by scandal, is drawing to an end. Viktor Yushchenko, a western-oriented former prime minister, wants to succeed him. He promises democracy, affluence and a proximity to Europe. But the election campaign is becoming dirty. Yushchenko's followers refuse to understand that their idol was never a figure for national identification, especially not in the collectivist-minded, Russian-speaking east with its unprofitable coal mines, where people are less worried about Europe than about their day-to-day survival. The government's election engine is in full swing too: Yushchenko's chief rival, Premier Viktor Yanukovich, has just raised the minimum wage level.

"That Would Be a Coup d'Etat"

SPIEGEL interview with presidential candidate Viktor Yushchenko about the state of the country and the manoeuvrings of the Kuchma leadership:

"We really need a political reform to create a clearly defined power structure. Today, Ukraine is the empire of a single person, it is a clan model, on which the public has no influence."

"The Wall of Water"

Cuba: Restrictions imposed on US tourists, penalties imposed on trade partners in Europe - the regime of old-time revolutionary Fidel Castro has come under pressure through a stricter US embargo. The mood between Washington and Havana is once again as frosty as it ever was at the height of the Cold War. In a 423-page document, the US administration has recorded how it intends to bring down Castro. Meanwhile, Castro has for some time been experiencing a diplomatic comeback in Latin America. Castro owes the Latino solidarity in particular to Bush's Rambo-like behaviour: because the American Goliath has unleashed a undeclared economic war against the Cuban regime.

"Responsible for Many Tragedies"

SPIEGEL interview with the Speaker of the Cuban parliament Ricardo Alarcon about the new confrontation with the USA:

"Bush is playing Russian roulette, because the measures have divided the Cuban community. … The real reason for this new confrontation is the irrational reaction of people who feel as though they have been pushed into a corner. … Until now, Europe's policies concerning Cuba have blindly followed the Americans. Yet the tightening of the embargo also affects European investments. Why is there no outcry about this?"

"The Big Photo Onslaught"

Photo industry: Digital technology has led to a world-wide boom for the photo industry. Never before have so many cameras been sold. But the accelerating drop in prices is causing the industry more and more problems. Some companies have already been forced to give up. Yet the current price war is just the beginning of a much tougher battle. The rapid spread of mobile phones with camera functionality will put even greater pressure on simple quick-shot cameras. Nokia even wants to offer mobile phones that are a match for sophisticated cameras.

"Only an Intermezzo"

SPIEGEL interview with Hanns-Peter Cohn, 56, board director of the legendary Leica brand, about the boom and the future of digital photography:

"Our core competency was and still is optics. In order to get involved in the new technology, our high-quality lenses first had to be compatible with it. We have now achieved that. … Digital technology focuses on bulk, on speed, and is therefore an expression of our times, like e-mail. … The friends of digital photography have another, very different, major problem: when the next technological leap takes place the question will be whether today's data carriers can actually still be read."

"Gerd the Dashing"

Contemporary history: The Austrian writer Martin Pollack has told the story of his father, a member of the SS and a Gestapo official, who enjoyed murdering. In the end he was himself murdered. Pollack does not excuse anything, nor does he make any accusations. But his disgust is patently obvious - also concerning the fact that everything simply continued after the end of the war, in a mixture of silence, self-opinionatedness and a clear conscience.

"Super-Flu in the Lab"

Epidemics: Researchers in the Netherlands want to blend the Asian bird flu virus with a human influenza virus to create a new strain. The experiment is supposed to establish how dangerous this kind of chimera might be - but what if the horror microbe is accidentally released? On the one hand, the way in which such a super-flu might arise in the wild would be understood better, allowing new types of vaccine to be developed that are not only effective against specific types of flu, but against an entire group. On the other hand, experts warn, the human-adapted bird flu virus could inadvertently be released into the wild, producing a laboratory-made epidemic. Furthermore, they worry that terrorists or alleged rogue statues could get their hands on the infectious material and use it as a biological weapon.

"Binoculars for the Planetary Hunt"

Astronomy: Astronomers are setting up the world's most advanced telescope on a Native American mountaintop. Will it help them to discover a second Earth? The two parabolic reflectors are linked together to produce the equivalent of a single, 12-metre mirror (which could not actually be manufactured using current technology). This gives the binoculars a ten times higher resolution than the legendary Hubble space telescope.

"Almost for Free"

Cars: Renault is building a car in Romania which fulfils all Western standards and only costs 5000 euros. The secret is to dispense with robots: manual workers are cheaper. The basic version of the Dacia Logan, sporting a 75 hp engine, costs 5000 euros in its home market - barely more than the antiquated, minimalist cars of the socialist era. However it fulfils all Western licensing standards including the strict Euro 4 emissions laws.