Chapter 383 - 28: The Largest Auction in History

"A privatization advisor," Demaziere said. "Unofficial, but influential. You'll be involved in shaping privatization policy, have access to all key information, and become one of the new government's economic strategists."

Werner was silent for a few seconds. "Mr. Prime Minister, I must confess, I'm a man of the old regime. I worked for Koko for over twenty years, and I profited from the old system."

"I know," Demaziere said. "But I've also heard about the files on you found in the Stasi archives. You refused to persecute dissidents, and you secretly helped political prisoners. Mr. Betelich, you aren't perfect, but who was perfect under that regime?"

Werner looked at Demaziere, waiting for him to continue.

"Besides," Demaziere said, "you understand the East German economy better than anyone. I need someone like that, someone who can tell me the truth, not some West German advisor who only knows how to make empty promises."

"I can tell you the truth," Werner said. "But the truth is brutal."

"I'm listening."

"Privatization will cause mass unemployment," Werner said. "Most of East Germany's state-owned enterprises are not competitive. They will go bankrupt immediately after being privatized. Millions of workers will lose their jobs."

The color drained further from Demaziere's face.

"But if handled properly, the pain can be minimized," Werner said. "First, establish a transparent auction mechanism to prevent plunder by speculators. Second, prioritize buyers who will retain jobs. Third, for strategic enterprises, the government should retain a certain stake. Fourth, create a social safety net to help unemployed workers find new jobs."

"That sounds reasonable," Demaziere said. "But implementation will be difficult."

"Extremely difficult," Werner admitted. "And many people will oppose it. Those with vested interests will oppose it, speculators will oppose it, and even the unemployed workers will oppose it."

"Then why are you still willing to do it?"

"Because if I don't do it, someone worse will. Mr. Prime Minister, privatization is inevitable. The question isn't whether to do it, but how. Rather than letting people who only want to line their pockets lead this process, it's better to have someone who truly understands East Germany be a part of it."

Demaziere stared at Werner for a long moment before saying, "Mr. Betelich, I accept your proposal. Starting today, you are the new government's privatization advisor."

"Thank you, Prime Minister."

"No." Demaziere stood up and extended his hand. "I should be thanking you."

Werner took his hand.

**************

「Friday, March 30th, 10:00 AM.」

Werner sat in a conference room at the new government's Ministry of Economics, a thick document before him.

List of East German State-Owned Enterprises.

Eight thousand six hundred and forty-two enterprises, from steel mills to textile factories, from chemical plants to food processing plants, from mines to shipyards.

The name, location, number of employees, and financial status of each enterprise were listed in detail.

Werner flipped through the list, calculating in his head.

'This is a feast.'

Assets worth hundreds of billions of Marks, waiting to be carved up.

West German investors would come, international speculators would come, and even old East German bureaucrats would want a piece of the pie.

And Werner, as the privatization advisor, would be at the center of this feast.

He would influence policy, have access to information, and know which enterprises were valuable, which would be sold for a song, and which were worth acquiring.

Then, through proxies, through West German shell companies, he would quietly acquire the undervalued assets.

This was the final step of his plan.

To transform from a gray-market merchant of the old regime into a successful entrepreneur of the new.

"Mr. Betelich?"

Werner looked up and saw Borg standing in the doorway.

"Mr. Borg."

"Prime Minister Demaziere would like to see you," Borg said. "It's about the Treuhand."

"The Treuhand?"

"Yes," Borg said. "The new government is preparing to establish a special agency responsible for managing and privatizing all state-owned enterprises. This agency will be called the Treuhand."

Werner stood and followed Borg toward the Prime Minister's Office.

He knew about the Treuhand.

In the history books from his past life, this agency was described as "the greatest controversy in the history of German reunification."

The Treuhand was the largest and most controversial "bankruptcy liquidation center" in human history.

Its sole mission was to sell off, privatize, or shut down East Germany's forty years of "national assets" in the shortest time possible.

If East Germany were a bankrupt conglomerate, the Treuhand was the "professional liquidator" sent to sell off every desk, factory, and plot of land.

It managed the privatization of all of East Germany's state-owned assets, involving transactions worth hundreds of billions of Marks.

But it also caused mass unemployment—around 2.5 million people lost their jobs—the fire-sale of massive assets, and widespread corruption.

In 1991, the Treuhand's first president, Detlev Rohwedder, was assassinated in front of a window in his own home, a testament to the depth of public resentment against him.

***************

Demaziere sat behind his desk, a draft proposal laid out before him.

"Mr. Betelich, please have a seat." He gestured to a chair. "I'd like to hear your advice regarding the Treuhand."

"Go on, Prime Minister."

"The Treuhand will take over all state-owned enterprises and be responsible for their privatization," Demaziere said. "But we've run into a problem: who should lead this agency?"

"Have you considered any candidates?"

"A few, but none are ideal," Demaziere said. "They're either people from the old regime who lack public trust, or they're experts from West Germany who don't understand the situation in East Germany."

"So what kind of person do you need?"

"Someone who understands East Germany but also has a reformer's mindset." Demaziere looked at Werner. "Mr. Betelich, would you be willing to take on this position?"

Werner's heart skipped a beat.

'This offer is much bigger than I expected.'

'President of the Treuhand. It's a position of immense power, controlling the fate of all of East Germany's state-owned assets.'

'But it's also a huge target.'

'No matter what you do, someone will be dissatisfied, someone will criticize you, and someone will accuse you of corruption. You could even end up like Rohwedder, assassinated by angry radicals.'

'It's a position guaranteed to make one infamous.'

"Prime Minister, I'm honored," Werner said. "But I must refuse."

Demaziere was taken aback. "Why?"

"Because I'm not suitable," Werner said. "I'm a man of the old regime. Although I've done some good things, my history is too complicated. If I were to serve as president, it would create legitimacy problems for the Treuhand."

"Then who do you suggest?"

"A West German would be best," Werner said. "Someone with a business background and a clean record. That's the only way to gain the trust of both East and West Germany."

Demaziere thought for a moment. "You have a point. Would you be willing to serve as the vice president?"

"No, that either," Werner said. "I'd prefer to work behind the scenes as an advisor. That way, I can offer more candid advice without worrying about political pressure."

Demaziere looked at Werner for a long moment before saying, "Mr. Betelich, you're a clever man."

"I'm just a realist," Werner said.

He knew that a position in the spotlight was glamorous, but also dangerous.

Being an advisor behind the scenes, while less influential, was safer and more flexible.

Besides, what he truly wanted wasn't power, but opportunity.

The opportunity to participate in the privatization, the opportunity to acquire assets, the opportunity to establish himself in the new era.

For those things, the role of an advisor was more than enough.

Demaziere nodded. "Then we'll do as you say. I'll find a suitable president, and you will participate in all major decisions as a core advisor."

"Thank you, Prime Minister."

Werner stood up, preparing to leave.

"Mr. Betelich," Demaziere called after him.

"Yes?"

"I know you're not a saint," Demaziere said. "I know you will profit from this privatization. But I hope that while you profit, you will also consider the interests of the East German people."

Werner looked at Demaziere and said earnestly, "Prime Minister, I promise you, I will do my best to be fair."

"That's enough," Demaziere said.

Werner walked out of the Prime Minister's Office, stood by the entrance, and lit a cigarette.

The spring sun shone down on the streets of East Berlin, warm and bright.