In 1961, the communist government of East Germany began to construct the Berlin Wall, claiming that it was to act as a barrier against fascism. East Berlin and West Berlin were physically divided. West Berlin had a unique political status – it was an enclave of western ideals on Soviet satellite territory. East German citizens fled into West Berlin, as they tried to escape from a totalitarian society. It was possible to pass from one side of Berlin to the other only through certain checkpoints. Control was very strict, and very few people managed to escape. The sandy soil under the Wall was a blessing to some and a curse for others. It was easy to dig through, but it was also more likely to collapse.

Berlin was the site of a great deal of espionage and counter-espionage during the Cold War years. Tension mounted and reached its zenith in 1989, the year the Wall fell. It all started when, after a misleading media report, checkpoint staff started letting the masses through to West Berlin. People assumed the regime had collapsed and began to physically destroy the wall. On Christmas Eve 1989, the conductor Leonard Bernstein held the memorable Berlin Celebration Concert in honour of the fall of the Wall. Pink Floyd had a concert at the Potsdamer Platz in 1990. Berlin and Germany alike were reunited that same year. Another result was that the Bundestag was moved back to Berlin in 1991. Previously it had been in Bonn, the capital of East Germany. Berlin became the capital of a new united Germany. It wasn't until 1999 that the ministries and state offices were moved back to Berlin. Most ministry employees, however, still work in Bonn.

Today Berlin is visited by five million people a year. Although marred by economic and political disasters, the city has not only survived; it has improved. It has been rebuilt in a way that one could never guess that it was almost leveled to the ground once. The ultramodern glass, steel and concrete structures exemplify its international prominence. The city has a buoyant economy, a flourishing art and culture scene, and a lively nightlife. The streets are lined with masterpieces of architecture that represent every epoch.

Another characteristic feature of the city is that it is very decentralised. It comprises several major neighbourhoods. These are Prenzlauer Berg, Mitte, Friedrichshain, Schoneberg, Charlottenburg, Kreuzberg, and the Government Quarter. The first one, Prenzlauer Berg, was a working-class zone according to a historical plan, but in the early 1990s it was flooded by anarchist groups and rebels. However, today it is the trendiest neighbourhood in Berlin, with cult nightclubs and a lively art scene.