Back On Track
After years of economic decline and national self-doubt, Germany is taking the first small steps toward a revival
The Economy
A mild recovery could turn into something more if consumers overcome their fear of the future
Innovation
Labs Get Down to Business
Porsche
Home Court Advantage
Bohemian Rhapsody
Singing the praises of Munich, Germany's most vibrant, livable city
Cultural Comeback
From movies and music to theater and fashion, meet the stars of an artistic revival

Atlantic Crossing
The U.S. and Germany feud over war against Iraq. A case of irreconcilable differences? [Oct. 7, 2002]
The Party's Over
Helmut Kohl resigns his party post. [Jul. 31, 1978]
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Posted Sunday, July 18, 2004; 8:34 BST
Creative Capital
FASHION: Hot Christian Dior designer HEDI SLIMANE and top label HUGO BOSS are just two of the big names coming to Berlin for inspiration

Forget Paris and London. For the folks farthest out on fashion's cutting edge, Berlin is the new capital of creative inspiration. In the last few years, designers like Hedi Slimane of Christian Dior and labels like Hugo Boss have looked to the former East Berlin for inspiration, attracted by its edgy art and music scenes and fashion-forward street life. Slimane rented a studio there for three years while producing a glossy photography installation and book about the city. Last fall Hugo Boss, which is based in Metzingen in southern Germany, held its annual fashion show and party in an abandoned Berlin post office. The look of Berlin — a low-key mix of vintage leather coats, rolled-up scarves and knee-high boots — has been a favorite for several seasons. And the city is widely cited as a wellspring of electronic dance music, since spread around the world. "Everybody in fashion and music in Europe is going to Berlin now to get ideas," says Phillip Wolff, communications director at Hugo Boss. "It's not as sophisticated as London and Paris , but it's had a very big impact on what's going on in the rest of Europe."

Creative types have long been drawn to Berlin because of low rents, ample studio space and the relatively low cost of living. The German capital's last cultural heyday was in the 1970s when the likes of David Bowie and Iggy Pop lived and worked in the then divided city. Now musicians, artists and designers from as far afield as Denmark and Japan are giving Berlin a young vibe again — nearly half the 3.4 million residents are under 35.

Kunst-Werke — a gallery, studio space and artists' residence run by Klaus Biesenbach, chief curator at the cutting-edge P.S. 1 Contemporary Art Center in New York City's Long Island City — has become the focus of the artistic renaissance. Located in a former margarine factory in the trendy Berlin-Mitte district, Kunst-Werke now hosts the popular Berlin Biennial for Contemporary Art. Thanks to Kunst-Werke and other galleries, Berlin has replaced Cologne as Germany's unofficial art capital.

Where art goes, fashion generally follows — and many designers, both German and foreign, have set up shop in the city. "Berlin is not a rich city, so the scene is not at all about money or society or status," says Slimane. "People just don't have those values. Everyone here is creating, so there is a very different rhythm. It's a very free territory." Spurning conventional retail wisdom, designers like Bernard Willhelm and Kostas Murkudis sell their clothes in anonymous shops in the Mitte and Prenzlauer Berg districts; shoppers track down the addresses through friends, clubs or posters plastered around the city. Many retailers take out short leases so their establishments come and go in a matter of months, while the locations of shops like Apartment and clubs like Fun are passed on by word of mouth alone. Japanese designer and avant-garde fashion guru Rei Kawakubo was so inspired by Berlin's transient scene that she opened her own "guerrilla" Comme des Garcons store in East Berlin in February, and plans to close it after a year.

"These are not touristy places," says Martin Wuttke, the creative visionary behind nextguruNow, a Berlin consulting firm for local designers and trade fairs. "If you want to attract the fashion crowd, you can't show off in everybody's face here." Berlin 's understated cool looks set to keep the crowd coming back for more. — By Kate Betts

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On New Year's Eve, the Miseries of Minsk
As Russia hikes up the cost of gas for Belarus, the mood turns gloomy
Mogadishu at 60 Miles an Hour
Arms merchants are once again doing brisk business after a rapid change of power in this tough town, but so far the peace has held
The Year of The Nuke
A rundown of the world's nuclear powerhouses, and what to expect in the coming months


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FROM THE JULY 27, 2004 ISSUE OF TIME MAGAZINE; POSTED SUNDAY, JULY 18, 2004.

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