Why Berlin is like a teenager: European capitals, and their effect on GDP per capita

Alexanderplatz, Berlin. Image: Getty.

Cities are real money spinners, the economic power houses of the world.

That’s all the more true when you look at capital cities. As well as national governments, they often house a country’s business elite as well. Many also have a panoply of history and culture for the tourists to come snap at, too. Throw in the fact they often have larger populations, and you’ll find that many capitals provide a significant share of their country’s GDP.

But how far do capitals dominate, economically? In an age where secessionists are getting uppity and despots are itching to start firing missiles, what would happen to countries if their respective capitals disappeared?

A study, conducted by the Cologne Institute for German Business (IWD), calculated the impact various countries would see on their GDP per capita if their capital cities and their inhabitants were suddenly removed. It found that the most severely affected – and therefore the most capital-centric – economies were Greece and Slovakia. If Athens and Bratislava suddenly eloped together, those states would be 19.8 per cent and 18.9 per cent poorer respectively.

At the other end of the scale lies Germany. If, perhaps inspired by the efforts of Scotland or Catalonia, Berlin were to secede, then German GDP per capita would actually increase by 0.2 per cent. Berlin is basically a teenager of a capital city, lacking the financial responsibility of supporting its neighbours.

The data in chart form. Image: Statista.

There are a number of reasons for the capital’s lack of productivity. One is the country’s federal system, which means Germany has many different economic centres. What’s more, Berlin was split in two until less than thirty years ago, by the Cold War and a big wall. Despite having come leaps and bounds since reunification (thanks in part to the burgeoning start-up scene fueled by Club Mate), it still has further to go.

Rome is close behind Berlin in the capitals-not-pulling-their-weight race: taking away the city’s economic contribution would leave Italians with 1.6 per cent less GDP per capita. The richest cities in Italy are its northern economic powerhouses, such as Turin and Milan.

London falls in the middle of IWD’s rankings. If the Brexit jitters got too much for the City and the bankers led cosmopolitan London into forming a city state, then the remaining Brits would suffer an 11.1 per cent hit in GDP per capita.

This is perhaps surprising, given the gulf between London and the UK’s other major cities. In Greater Manchester, Birmingham, Glasgow and Liverpool, GDP per inhabitant falls below the national average. London has considerable higher standards of living than all of those.

Given that, it’s perhaps little wonder that the otherness of London and Londoners has started to enter the political discourse, with phrases like “metropolitan elite” getting bandied about by politicians and populists alike. A number of attempts to correct the London/everywhere else imbalance have been made, through initiatives such as the Northern Powerhouse Project, but the progress is slow, to say the least.

Perhaps being less financially less responsible for the country is preferable. Ah Berlin, to be a teenager again.

You can read more about the study here, provided that you speak German.


To beat rising temperatures, Vienna launches a network of 'Cool Streets'

A Vienna resident cools off at one of the city's new Cool Streets installations. (Courtesy Christian Fürthner/Mobilitätsagentur Wien)

Over the past several months, Austria has recorded its highest unemployment rate since World War II, thanks to the economic aftermath of the Covid-19 pandemic. With no job or a suddenly smaller income – not to mention the continued threat of the virus – many Viennese will opt for a staycation this summer.  

At the same time, last year, Austria’s capital experienced 39 days with temperatures of over 30°C (86°F), one of its hottest summers in history according to the Central Institute for Meteorology and Geodynamics.

Climate experts expect a similarly sizzling 2020 season, and city officials are now doubling down on efforts to combat the heat by launching a “Cool Streets” initiative as well as a new, state-of-the-art cooling park.

“As the city councilwoman in charge of climate, it is my job to ensure local cooling,” Vienna’s deputy mayor Birgit Hebein proclaimed at the opening of one of 22 new “Cool Streets” on 22 June.

“In Austria, there are already more heat deaths than traffic fatalities,” she added.

Hebein was referring to the 766 people the Austrian Agency for Health and Food Security included in its 2018 heat-associated mortality statistics. The number was up by 31% compared to 2017, and in contrast to the 409 people who died in traffic collisions the same year.

The project includes 18 temporary Cool Streets located across the city, plus four roads that will be redesigned permanently and designated as “Cool Streets Plus”.

“The Plus version includes the planting of trees. Brighter surfaces, which reflect less heat, replace asphalt in addition to the installation of shadow or water elements,” said Kathrin Ivancsits, spokeswoman for the city-owned bureau Mobilitätsagentur, which is coordinating the project.

Vienna's seasonal Cool Streets provide shady places to rest and are closed to cars. (Petra Loho for CityMetric)

In addition to mobile shade dispensers and seating possibilities amid more greenery provided by potted plants, each street features a steel column offering drinking water and spray cooling. The temporary Cool Streets will also remain car-free until 20 September.

A sensor in the granite base releases drinking water and pushes it through 34 nozzles whenever the outside temperature reaches 25°C (77°F) . As soon as the ambient temperature drops to 23°C (73°F), the sensor, which operates from 10 a.m. to 8 p.m., turns off the water supply.

The sensors were included in part to allay concerns about legionella, a pathogenic bacteria that can reproduce in water.  

“When the spray stops, the system drains, and therefore no microbial contamination can develop,” said Dr. Hans-Peter Hutter, deputy head of the Department of Environmental Health at the Center for Public Health at Medical University Vienna, in a televised interview.

Hutter also assured the public that there is no increased risk of a Covid-19 infection from the spray as long as people adhere to the one-meter social distance requirement.

But Samer Bagaeen of the University of Kent's School of Architecture and Planning notes that air cooling systems, like the ones used in Germany at abattoirs, have been found recently to be a risk factor for Covid-19 outbreaks.

“The same could be said for spay devices,” he warned.

Vienna’s district councils selected the 22 Cool Street locations with the help of the city’s Urban Heat Vulnerability Index. The map shows where most people suffer from heat by evaluating temperature data, green and water-related infrastructure, and demographic data.

“Urban heat islands can occur when cities replace the natural land cover with dense concentrations of pavement, buildings, and other surfaces that absorb and retain heat,” as the US Environmental Protection Agency states.

A rendering of Vienna's planned park featuring a Coolspot, which is scheduled to open in August. Click to expand.
(Courtesy Carla Lo Landscape Architecture)

Vienna’s sixth district, Mariahilf, is such an area. The construction of the capital’s first “Cooling Park”, a €1 million project covering the 10,600 square-metre Esterházypark, is designed to provide relief. 

Green4Cities, a centre of excellence for green infrastructure in urban areas, designed the park’s main attraction, the “Coolspot”. The nearly 3.40-metre high steel trellis holds three rings equipped with spray nozzles. Textile shading slats, tensioned with steel cables, cover them.

The effects of evaporation and evapotranspiration create a cooler microclimate around the 30 square-metre seating area, alongside other spray spots selectively scattered across the park.

The high-pressure spray also deposits tiny droplets on plant and tree leaves, which stimulates them to sweat even more. All together, these collective measures help to cool their surroundings by up to six degrees.

The landscape architect Carla Lo and her team planned what she calls the “low-tech” park components. “Plants are an essential design element of the Cooling Park,” Lo says. “By unsealing the [soil], we can add new grass, herbaceous beds, and more climate-resistant trees to the existing cultivation”.

Light-coloured, natural stone punctuated by grass seams replaces the old concrete surfaces, and wooden benches meander throughout the park.

Living near the park and yearning for an urban escape close by, Lo says she’s motivated to ensure the park is completed by mid-August.

“If we don't do anything, Vienna will be another eight degrees Celsius hotter in 2050 than it already is,” Hebein said.

Vienna recently came in first in the World's 10 Greenest Cities Index by the consulting agency Resonance.

“There is no one size fits all on how cities respond to urban heat,” says the University of Kent’s Bagaeen, who points out that Vienna was one of the first European cities to set up an Urban Heat Islands Strategic Plan in 2015.

In the short term, prognoses on the city’s future development may be more difficult: Vienna votes this autumn.

Petra Loho is a journalist and photographer based in Austria.