I don't fully understand the politics either, but this is a clear signal that the South wants the North to flourish. Everyone wins when capitalism is injected into an economy. The South's private sector gains would be big because of the cheap labor, and the population of the North would have incredible wage growth. The effects of injecting capitalism would be magnified relative to the fall of East Germany because the differences in GDP are enormous.

If this happens, it would be the biggest win for capitalism/democracy I've seen in my lifetime (I'm born after the fall of ussr)