Over the past 25 years, Berlin has undergone a rapid process of neoliberalization. This article argues that the city’s transformation has been heavily crisis-driven and fueled by a strong political agenda. Two watershed events are crucial for an in-depth understanding of the dynamics at work: The collapse of the German Democratic Republic (GDR) in 1989, followed by a neo-conservative and nationalist, entrepreneurial strategy for the reunified German Capital; and the financial crisis of 2001, which brought a coalition between Social-Democrats and Socialists into power that strongly emphasized Berlin’s (sub-)cultural and cosmopolitan identity, but effectively put the city on a fierce austerity track.