BERLIN, May 29 - The city split by the Cold War was reunited in 1989 after the euphoric collapse of the Berlin Wall but divisions between the formerly Communist East and West Berlin's enclave of capitalism still linger.

Berlin, by far Germany's largest city with a population of 3.4 million, will host the World Cup final on July 9 at the Olympiastadion, an honour it was denied in 1974 when the World Cup was last held on German soil and the final was in Munich.

The reunited capital has borne the brunt of the best and the worst of Germany's turbulent history. Shiny new office towers and modernised quarters stand in contrast to older pock-marked buildings, silent testimony to World War Two bombs and bullets.

Berlin's high unemployment rate, low rents and falling property values also reflect a weak underlying economy that belies the ostensible wealth and power on display in the newly renovated government quarter or posh new shopping districts.

Unlike European capitals such as London or Paris that dominate their countries, Berlin faces constant challenge from provincial cities -- leery of centralised power after the Nazi abuses -- that compete for funding, cultural events and corporations.

The loss of many key pre-war industries -- the banks went to Frankfurt and firms like Siemens fled to Munich -- has left gaping holes in the local economy and mountains of public debt.

Berlin, where people from all 31 visiting World Cup teams live in a melting pot made up of 180 nations, will be briefly reunited at least emotionally in celebrations around the tournament -- especially in vast public viewing areas at the Brandenburg Gate.

The city, a magnet for students, artists, filmmakers and musicians, is hoping stimulus from the World Cup will inject a new optimism to help overcome structural woes and its trauma-filled history.

"This is a once-in-a-lifetime chance to present Berlin to the world with positive news," said Klaus Wowereit, Berlin's popular mayor -- first elected after outing himself as gay.

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