Gera, Germany

Capital City

With a population of just under 95,000, Gera is a faded industrial hub in eastern Germany struggling to reinvent itself. The city's textile-focused economy has collapsed, leaving high unemployment and a shrinking population in its wake. Bureaucracy remains a persistent headache, with the city's administration losing many functions after reunification. And the local climate, marked by cold winter nights and stagnant summer heat, can be a challenge. Yet Gera retains pockets of historic charm, from its baroque town hall to the birthplace of painter Otto Dix. For those seeking an affordable cost of living in a small, idiosyncratic German city, Gera may hold appeal - but it's no economic powerhouse.