The goal of this project is to provide a systematic and methodologically comprehensive analysis of the link between regional inequality and political discontent and increasing populism for the case of Germany. We proceed in three steps. First, we provide a thorough description of inequality in Germany and its evolution over time, explicitly discussing alternative dimensions of inequality as well as important methodological aspects. Based on this evidence, we, secondly, study drivers of economic inequality, broadly differentiating between market forces and the role of public policies. In a final step, we assess the political consequences of regional inequality.