"When the Berlin Wall opened two decades ago, freedom quickly swept through Germany's largest city. Prosperity, by contrast, was much slower to arrive. After the euphoria of reunification wore off, Berliners endured a recession that lasted almost without pause from 1996 to 2004. Even as imposing new government buildings rose along the stately Unter den Linden, the city of 3.4 million was in an economic funk.
Now, as Berlin celebrates the 20th anniversary of Nov. 9, 1989—the day East German apparatchiks threw open border crossings — its status as
Germany's hippest and most affordable big city is finally translating into growth. Berlin has become a magnet for Internet and media startups as well as established corporations eager to tap the city's well-educated young people.
One advantage is that after a violent and traumatic 20th century, Berlin has been able to reinvent itself in the 21st.
The city is famous for its evolving arts and fashion communities and a lively club scene. In the former East Berlin's Mitte neighborhood, young people from across Europe chug tall glasses of beer at Clärchens Ballhaus, a retro-hip dance hall; in the summer Berliners pack outdoor hangouts on the Spree River. "There is a lot of creative freedom," says Christophe Maire, a native of Switzerland."