• 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
  • ECONOMIC UNIFICATION,

    STAGNATION, UNEMPLOYMENT, AND EURO CHALLENGES

    After reunification the German economy was challenged as never before since

    the immediate postwar era. The task of merging the two economies did not

    work out as smoothly as had been thought by West German leaders. The predictions

    of rapid rebuilding, economic integration, and a rosy prosperity did not

    come true. Everyone had been confident that private and public investment

    along with job retraining would successfully modernize the economy in the former

    East German states. The program for this enterprise was optimistically

    called Cooperative Enterprise for the Upswing in the East. The privatization

    process was carried out by a Trusteeship Agency (Treuhandanstalt). Both German

    and foreign investors were invited to purchase plants and properties.

    Unfortunately, they were overvalued at above 1 trillion German marks (DM),

    and in the end instead of making money it cost the German government 250

    billion marks. Not surprisingly, the Trusteeship Agency had difficulty selling

    most of the properties, and before a buyer would conclude a deal, the government

    had to pay for such things as modernizing the plants and environmental

    cleanup. Furthermore, the former markets in Eastern Europe for the inferior

    East German products now had disappeared. The federal deficit for 1994 alone

    reached 71 billion marks and the national debt skyrocketed. Then interest rates

    rose. Unemployment in the former East German states averaged around 15 percent,

    but some areas reported more than 40 percent. It must not be forgotten

    that the infrastructure, whether trains, roads, or communications, were substandard,

    which required the federal government to finance a vast modernization

    project. In order to pay for all this and not ruin the economy, an

    agreement was reached in 1992 called the Solidarity Pact, which was to raise

    some 100 billion marks by extra taxes and spending cuts.

    A national debate erupted over how to solve the economic problems facing a

    unified Germany in the European and global market. In the past Germany had

    been praised as Model Deutschland, a cooperative model of how an industrial

    society ought to be organized. Numerous solutions were suggested. The main

    alternatives, however, consisted of two: (1) to allow the capitalistic forces of the

    marketplace to bring about the necessary adjustments, or (2) for the government

    to craft an industrial policy that would provide goals and direction, and to promote

    change with tax and investment laws. The conservatives focused on the

    obvious need to lower the normally high wages of German workers who had

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