• GERMANIC MIGRATIONS AND
  • FRANKISH KINGDOM
  • JOHANNES REUCHLIN
  • THE WEIMAR CONSTITUTION
  • W
  • INFLATION, REPARATIONS, AND
  • THE STRESEMANN ERA, 19231929
  • STABILIZATION AND LOCARNO,
  • CULTURE AND SOCIETY
  • ROAD TO DICTATORSHIP,
  • T
  • CONSOLIDATION OF POWER
  • THE NAZI TOTAL STATE
  • ULRICH VON HUTTEN
  • PERSECUTION OF THE JEWS
  • RELIGION AND THE CHURCHES
  • FOREIGN POLICY
  • W
  • THE BATTLE OF BRITAIN
  • INVASION OF RUSSIA
  • HITLERS PLANS FOR EUROPE
  • TURNING OF THE TIDE,
  • THE HOME FRONT
  • THE RESISTANCE
  • PHILIP MELANCHTHON
  • D-DAY TO DEFEAT NAZI GERMANY
  • THE HOLOCAUST
  • A
  • ALLIED PLANS AND CONFERENCES
  • DENAZIFICATION
  • POLITICAL PARTIES AND TRADE
  • LOCAL STATE FORMATION
  • PARLIAMENTARY COUNCIL AND THE
  • ECONOMIC RECONSTRUCTION
  • T
  • ERASMUS OF ROTTERDAM
  • BUNDESTAG ELECTION AND
  • REGAINING SOVEREIGNTY AND INTEGRATION
  • RECONSTRUCTION AND THE ECONOMIC
  • TRANSITIONAL YEARS AND
  • THE GRAND COALITION AND YOUTH
  • THE SOCIAL-LIBERAL COALITION
  • OSTPOLITIK (FOREIGN POLICY
  • CULTURE AND SOCIETY
  • SOCIAL STRUCTURE
  • SCHMIDT ERA: SOCIAL UNREST,
  • PRINTING AND MEDICINE
  • THE KOHL ERA, 19821998
  • T
  • UPRISING OF JUNE 17, 1953
  • ECONOMIC SYSTEM
  • SOCIETY, EDUCATION, AND
  • RELATIONS WITH THE FEDERAL
  • R
  • CONSEQUENCES AND PROBLEMS OF
  • ECONOMIC UNIFICATION,
  • P
  • RENAISSANCE ART
  • UNIFICATION POLITICS AND ITS
  • FOREIGN POLICY
  • GOVERNMENT AND ELECTIONS,
  • HISTORICAL DICTIONARY A
  • A
  • Abwehr
  • Adenauer, Konrad
  • Afrika Korps
  • Agadir Incident
  • Agrarian League
  • NEED FOR CHURCH REFORM
  • Agricola, Rudolf
  • Air Force
  • Albert (Albrecht) of
  • Albert V
  • Algeciras, Conference of
  • Allied Control Council
  • Alsace-Lorraine
  • Altdorfer, Albrecht
  • Amiens, Battle of
  • Anabaptists
  • P
  • Anglo-German Naval Treaty
  • Anschluss
  • Anti-Comintern Pact
  • anti-Semitism/Jew hatred
  • anti-Semitism
  • Anti-Socialist Law
  • Ardennes, Battle of the
  • Arendt, Hannah
  • Armed Forces (Wehrmacht)
  • Armed Forces (Bundeswehr):
  • LUTHER AND MELANCHTHON
  • Army (Prussian to 1860)
  • Army (Second Empire,
  • Asylum Law
  • Atlantic, Battle of the
  • Auerstadt, Battle of
  • Augsburg, Diet of
  • Augsburg, Religious Peace of
  • Augsburg, War of the League
  • Augsburg Confession
  • Augspurg, Anita
  • LUTHER AND ZWINGLI
  • Auschwitz-Birkenau
  • Austerlitz, Battle of
  • Austria
  • Austrian Succession, War of
  • autarchy
  • autobahns
  • Axis, The
  • B
  • Baden-Württemberg
  • Ballin, Albert
  • CAROLINGIAN EMPIRE
  • KNIGHTS REVOLT AND GREAT
  • Barbie, Klaus
  • Barmen Declaration
  • Barth, Karl
  • Basic Treaty
  • Bauernschutz
  • Bauhaus
  • Baumer, Gertrud
  • Bavaria
  • Bavarian Peoples Party (BVP)
  • Bavarian Succession, War of
  • REFORMATION AND THE TOWNS
  • Bayer AG
  • Bayreuth
  • Bebel, August
  • Beck, Ludwig August Theodor
  • Beckmann, Max
  • Beer-Hall Putsch of 1923
  • Beethoven, Ludwig van
  • Benjamin, Walter
  • Benn, Gottfried
  • Bennigsen, Rudolf von
  • ANABAPTISM AND MÜNTZER
  • Benz, Carl Friedrich
  • Bergen-Belsen
  • Berghof
  • Berlin
  • Berlin, Battle for (Fall of)
  • Berlin, Congress of
  • Berlin-Baghdad Railway
  • Berlin Blockade
  • Berlin Conference
  • Berlin Wall
  • CALVINISM IN GERMANY
  • Bernstein, Eduard
  • Bethmann Hollweg, Theobald
  • Biedermeier
  • Biermann, Wolf
  • Bismarck, Otto Eduard Leopold
  • blank check
  • Bleichröder, Gerson von
  • Blenheim, Battle of
  • Blomberg, Werner von
  • Blücher, Gebhard
  • CHARLES V AND THE REFORMATION
  • Böll, Heinrich
  • Bonhoeffer, Dietrich
  • Bonn
  • Bormann, Martin
  • Born, Max
  • Borsig, August
  • Bosch, Robert
  • Bosnia-Herzegovina
  • Brahms, Johannes
  • Brandenburg
  • C
  • Brauchitsch, Walther von
  • Braun, Eva
  • Braun, Karl Ferdinand
  • Braun, Otto
  • Braun, Wernher von
  • Brecht, Bertolt
  • Bremen/Bremerhaven
  • Brentano, Elizabeth Bettina
  • Breslau
  • The Bridge
  • THE THIRTY YEARS WAR
  • Britain, Battle of
  • Brüning, Heinrich
  • Buchenwald
  • Bülow, Bernhard von
  • Bundesrat
  • Bundestag
  • Burschenschaft
  • C
  • Canisius, Peter
  • canton system
  • A
  • Carlsbad Decrees
  • Celtis, Conrad
  • Center Party
  • Chamberlain, Houston Stewart
  • Charles V
  • Charles VI
  • Charles VII
  • Charlottenburg, Palace of
  • Christian Democratic Union
  • Christian Social Union
  • LITERATURE
  • Civil Code, German (Revised
  • Clausewitz, Carl von
  • Concordat of 1933
  • Condor Legion
  • The Confederation of the Rhine was a
  • Confessing Church
  • Congress of Vienna
  • conservatism
  • constitutional traditions
  • Counter-Reformation
  • MUSIC
  • Cranach, Lucas, the Elder
  • cultured elites
  • D
  • Daimler, Gottlieb
  • Danish War
  • Danzig
  • Dawes Plan
  • D-Banks
  • D-Day
  • Degenerate Art
  • SAXON AND SALIAN DYNASTIES,
  • SCIENTIFIC REVOLUTION
  • denazification
  • Denck, Hans
  • Depression, The Great
  • Depressions
  • détente
  • Diesel, Rudolf
  • Dietrich, Josef Sepp
  • Diplomatic Revolution of 1756
  • Dix, Otto
  • Döblin, Alfred
  • GOTTFRIED WILHELM VON LEIBNIZ
  • Dönitz, Karl
  • Dresden
  • Droste-Hülshoff, Annette
  • Dual Alliance
  • Dürer, Albrecht
  • Düsseldorf
  • E
  • Edict of Toleration
  • Ehrlich, Paul
  • Eichendorff, Joseph von
  • PIETISM
  • Eichmann, Adolf
  • Eicke, Theodor
  • Einsatzgruppen
  • Einstein, Albert
  • Eisner, Kurt
  • El Alamein, Battles of
  • Elbe River
  • Ems Telegram
  • Enabling Act
  • Engels, Friedrich
  • ROCOCO
  • ENIGMA/ULTRA
  • Enlightenment
  • Erasmus, Desiderius
  • Erfurt Program
  • Erhard, Ludwig
  • Ernst, Max
  • Erzberger, Matthias
  • Eugene, prince of Savoy
  • European Coal and Steel
  • European Defense Community
  • A
  • European Economic Community
  • European Union
  • euthanasia
  • expressionism
  • Falkenhayn, Erich von
  • F
  • Fatherland Party
  • Federal Constitutional Court
  • Federal Republic of Germany
  • Federation of German Industry
  • TURKISH WARS
  • Federation of German Womens
  • feminism, 18151945
  • feminism, 19452005
  • Ferdinand II
  • Feuerbach, Ludwig Andreas
  • Fichte, Johann Gottlieb
  • Final Solution
  • Fischer, Josef Joschka
  • Fischer von Erlach, John
  • Fontane, Theodor
  • WARS OF AUSTRIAN SUCCESSION
  • Four Year Plan
  • Francis II
  • Frank, Anne
  • Frank, Hans
  • Frankfurt am Main
  • Frankfurt Parliament
  • Frederick I
  • Frederick II, The Great
  • Frederick III
  • Frederick III, The Wise
  • STATE REFORMS
  • Frederick William
  • Frederick William I
  • Frederick William II
  • Frederick William III
  • Frederick William IV
  • Free Corps
  • Free Democratic Party
  • Freemasonry/Illuminati
  • French Revolutionary Wars
  • Freytag, Gustav
  • FOREIGN POLICY AND KAUNITZ
  • Friedrich, Caspar David
  • Fritsch, Werner von
  • Fugger, Jacob the Rich
  • Führerprinzip
  • G
  • Galen, Clemens August von
  • Gellert, Christian
  • General Directory
  • Genscher, Hans-Dietrich
  • Gentz, Friedrich
  • JOSEPH II AND REFORM
  • German Christians
  • German Communist Party
  • German Confederation
  • German Conservative Party
  • German Democratic Party
  • German Democratic Republic
  • German Labor Front
  • German National Peoples
  • German Peoples Party
  • German Progressive Party
  • HOHENSTAUFEN DYNASTY,
  • VIENNA AND ARCHITECTURE
  • German Reich (Imperial) Party
  • German Womens Bureau
  • German Workers Party
  • Germany Treaty
  • R
  • FREDERICK III
  • FREDERICK WILLIAM I, THE
  • FREDERICK THE GREAT
  • SEVEN YEARS WAR
  • S
  • ECONOMY
  • POLITICAL DECENTRALIZATION
  • SOCIAL STRUCTURE
  • HABSBURG DYNASTY
  • CULTURE
  • THE ENLIGHTENMENT
  • LITERATURE AND DRAMA
  • PHILOSOPHY
  • SECRET SOCIETIES
  • T
  • R
  • THE ROMANTIC MOVEMENT
  • NATIONALISM AND LIBERALISM
  • EARLY INDUSTRIAL REVOLUTION
  • CITIES AND CRAFT GUILDS
  • REVOLUTIONS OF 1848
  • ARMY REFORM AND PARLIAMENTARY
  • O
  • THE DANISH WAR, 1864
  • AUSTRO-PRUSSIAN WAR, 1866
  • THE FRANCO-PRUSSIAN WAR,
  • COLLAPSE OF THE SECOND FRENCH
  • I
  • N
  • ART AND ARCHITECTURE
  • ORIGINS OF CAPITALISM
  • SOCIAL STRUCTURE AND WOMEN
  • EDUCATION
  • T
  • POLITICAL PARTIES
  • THE KULTURKAMPF, SOCIALISM,
  • FOREIGN POLICY AND ALLIANCE
  • BISMARCKS DISMISSAL
  • WILHELMINE GERMANY
  • T
  • THE QUESTION OF
  • LATE MEDIEVAL CULTURE
  • CONDUCT OF THE WAR
  • PEACE RESOLUTION, REFORM, AND
  • AN UNPLANNED REVOLUTION
  • N
  • POLITICAL PARTIES UNPREPARED
  • A REVOLUTIONARY PATTERN
  • WORKERS AND SOLDIERS
  • KURT EISNER AND REVOLUTION IN
  • A REPUBLIC PROCLAIMED
  • A SEVERE ARMISTICE
  • T
  • ESTABLISHMENT OF A REVOLUTIONARY
  • EBERT MAKES A DEAL WITH THE
  • THE SPARTACISTS
  • INTERPRETATION OF THE
  • A VENGEFUL PEACE
  • V
  • THE GOALS OF THE PEACEMAKERS
  • TERMS OF THE TREATY
  • WAR GUILT AND REPARATIONS
  • DENUNCIATION AND RELUCTANT
  • GERMANIC MIGRATIONS AND
  • CONSEQUENCES AND PROBLEMS OF

    UNIFICATION

    It cannot be denied that unification took place too quickly, but an open window

    of diplomatic possibilities in international affairs necessitated swift action.

    It was difficult to predict how long the Soviet reformer, Gorbachev, would

    remain as premier. Using currency unification between the GDR and the Federal

    Republic as a bridge to unification made a rapid transition to a market

    economy in the new states necessary but also made economic collapse

    inevitable. Few could have foreseen the challenges in transforming the GDRs

    planned economy into a largely free market economy as there were no precedents.

    Living standards unfortunately improved too slowly, and it was understandable

    that Easterners would grow impatient with the difficulties involved.

    People should have known that prices for basic essentials and services would

    have to rise because so much had been heavily subsidized in the GDR. It did

    surprise Westerners how unmotivated East German workers had become, how

    inexperienced they were with competitive market conditions, and how

    untrained they were to handle modern technology. Inflationary pressures also

    resulted from the demand for wage increases because Easterners grew impatient

    with pay scales that were half that of Westerners. It also should not have

    come as a great shock when unemployment rose rapidly as a result of the closing

    of state-run companies. Everyone knew that the state-owned enterprises

    were hopelessly overstaffed and that workers had not been dismissed even

    188 Germany

    when unneeded. Unemployment reached 15 percent in some areas but more

    than 30 percent in others. By some estimates there were 50 percent fewer jobs

    in the eastern industrial sector than before unification, which naturally led to

    increased social tensions.

    The West German government had underestimated the economic and social

    changes that were necessary in the GDR. The whole economy had to be restructured

    along capitalist lines. Although some German firms may have profited by

    purchasing the former public properties offered by the Trust Agency, the federal

    government had to absorb the costs of modernization and environmental

    cleanup and vast infrastructure improvements. There also was a great need for

    an efficient public administration to replace the old bureaucracy that had operated

    under the SED. West German experts were required to help with public

    administration and the judicial system, but few wanted to live in the East. Civil

    servants and judges were not used to making independent decisions without

    being directed by the Communist Party. Legal claims on property, houses, and

    businesses necessitated extensive legal proceedings, long delays in business

    development, and fears about the loss of homes.

    Another negative result of reunification was a currency crisis and a large

    increase in the national debt and inflation. In 1990 the Federal Bank had

    warned that the German governments policy of supporting high wages without

    the equivalent productivity would be inflationary. Then the German

    unions demanded wage increases to cover the rise in the cost of living. The

    bank responded by raising interest rates by three percentage points as an antiinflationary

    measure at the time that American rates had hit an all-time low.

    With a surge in foreign investment in German bank deposits, the value of the

    mark rose and other European countries raised their interest rates in order to

    maintain a fixed exchange rate required in existing agreements. As a consequence

    the British and Italians pulled their currencies out of the fixed rate

    system.

    With a faltering economy, the rising cost of German unification, second

    thoughts about European unity, spreading disillusionment with political parties,

    and growing resentment against foreigners, there was a resurgence of

    right-wing parties. The rise of neo-Nazism was associated with violence against

    foreigners. The neo-Nazis took over the skinhead groups that had always been

    opposed to the establishment. Economic discontent in the eastern states helped

    make this possible, but most of the incidents were located in the former West

    Germany. In the former GDR the worst spasm of nativist violence since the days

    of Adolf Hitler was prompted by the victory of skinheads over the local authorities

    in the Saxon town of Hoyerswerda at the end of September 1991. While

    foreign mining workers had left after unification, several hundred asylum seekers

    arrived from 23 different countries. The skins first attacked Germans but

    then turned to the Vietnamese. Related to this extremism was the need to

    revise Germanys very liberal asylum laws. In article 16 of the Basic Law all victims

    of political persecution are able to apply for asylum and are supported by

    the German government for up to three years. In 1991, for instance, there were

    some 260,000 seeking asylum.

    Revolution and Reunification 189

    Finally, a crisis of identity grew among former East Germans. While they had

    rejected communism, West Germans had not considered them as equals but

    as backward country cousins. In establishing a new identity, there not only was

    a need to deal with their Communist but also their Nazi past, which had never

    been admitted by East Germans. Even though East Germans had been in favor

    of unification, they soon developed the attitude that they were being taken over

    and colonized by the West Germans.

    190 Germany

    were   GERMANC   Germany   Party   their   Prussians   army   state   government   became   they   during   Austrian   CHURCHES   French   political   Frederick   Nazis   Social   Hitler   after   against   economic   some   republican