History of the German Democratic Republic
Encyclopedia
The German Democratic Republic
German Democratic Republic
The German Democratic Republic , informally called East Germany by West Germany and other countries, was a socialist state established in 1949 in the Soviet zone of occupied Germany, including East Berlin of the Allied-occupied capital city...

(GDR), (DDR), often known in English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...

 as East Germany, existed from 1949 to 1990. It covered the area of the present-day German states of
Mecklenburg-Vorpommern
Mecklenburg-Western Pomerania
Mecklenburg-Vorpommern is a federal state in northern Germany. The capital city is Schwerin...

, Brandenburg
Brandenburg
Brandenburg is one of the sixteen federal-states of Germany. It lies in the east of the country and is one of the new federal states that were re-created in 1990 upon the reunification of the former West Germany and East Germany. The capital is Potsdam...

, Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...

 (excluding West Berlin
West Berlin
West Berlin was a political exclave that existed between 1949 and 1990. It comprised the western regions of Berlin, which were bordered by East Berlin and parts of East Germany. West Berlin consisted of the American, British, and French occupation sectors, which had been established in 1945...

), Sachsen
Saxony
The Free State of Saxony is a landlocked state of Germany, contingent with Brandenburg, Saxony Anhalt, Thuringia, Bavaria, the Czech Republic and Poland. It is the tenth-largest German state in area, with of Germany's sixteen states....

, Sachsen-Anhalt
Saxony-Anhalt
Saxony-Anhalt is a landlocked state of Germany. Its capital is Magdeburg and it is surrounded by the German states of Lower Saxony, Brandenburg, Saxony, and Thuringia.Saxony-Anhalt covers an area of...

 and Thüringen
Thuringia
The Free State of Thuringia is a state of Germany, located in the central part of the country.It has an area of and 2.29 million inhabitants, making it the sixth smallest by area and the fifth smallest by population of Germany's sixteen states....

.

Division of Germany

The Yalta Conference

At the Yalta Conference
Yalta Conference
The Yalta Conference, sometimes called the Crimea Conference and codenamed the Argonaut Conference, held February 4–11, 1945, was the wartime meeting of the heads of government of the United States, the United Kingdom, and the Soviet Union, represented by President Franklin D...

, held in February 1945, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, and the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 agreed on the division of Germany into occupation zones. Estimating the territory that the converging armies of the western Allies and the Soviet Union would overrun, the Yalta Conference determined the demarcation line for the respective areas of occupation. It was also decided that a "Committee on Dismemberment of Germany" was to be set up. The purpose was to decide whether Germany was to be divided into several nations, and if so, what borders and inter-relationships the new German states were to have. Following Germany's surrender, the Allied Control Council
Allied Control Council
The Allied Control Council or Allied Control Authority, known in the German language as the Alliierter Kontrollrat and also referred to as the Four Powers , was a military occupation governing body of the Allied Occupation Zones in Germany after the end of World War II in Europe...

, representing the United States, Britain, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

, and the Soviet Union, assumed governmental authority in postwar Germany. Economic demilitarization however (especially the stripping of industrial equipment) was the responsibility of each zone individually.

The Potsdam Conference

The Potsdam Conference
Potsdam Conference
The Potsdam Conference was held at Cecilienhof, the home of Crown Prince Wilhelm Hohenzollern, in Potsdam, occupied Germany, from 16 July to 2 August 1945. Participants were the Soviet Union, the United Kingdom, and the United States...

 of July/August 1945 officially recognized the zones and confirmed jurisdiction of the Soviet Military Administration in Germany
Soviet Military Administration in Germany
The Soviet Military Administration in Germany was the Soviet military government, headquartered in Berlin-Karlshorst, that directly ruled the Soviet occupation zone of Germany from the German surrender in May 1945 until after the establishment of the German Democratic Republic in October...

 (German: Sowjetische Militäradministration in Deutschland, SMAD) from the Oder and Neisse rivers to the demarcation line. The Soviet occupation zone included the former states of Brandenburg
Brandenburg
Brandenburg is one of the sixteen federal-states of Germany. It lies in the east of the country and is one of the new federal states that were re-created in 1990 upon the reunification of the former West Germany and East Germany. The capital is Potsdam...

, Mecklenburg-Vorpommern, Saxony
Saxony
The Free State of Saxony is a landlocked state of Germany, contingent with Brandenburg, Saxony Anhalt, Thuringia, Bavaria, the Czech Republic and Poland. It is the tenth-largest German state in area, with of Germany's sixteen states....

, Saxony-Anhalt
Saxony-Anhalt
Saxony-Anhalt is a landlocked state of Germany. Its capital is Magdeburg and it is surrounded by the German states of Lower Saxony, Brandenburg, Saxony, and Thuringia.Saxony-Anhalt covers an area of...

, and Thuringia
Thuringia
The Free State of Thuringia is a state of Germany, located in the central part of the country.It has an area of and 2.29 million inhabitants, making it the sixth smallest by area and the fifth smallest by population of Germany's sixteen states....

. The city of Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...

 was placed under the control of the four powers. The German territory east of the Oder-Neisse line
Oder-Neisse line
The Oder–Neisse line is the border between Germany and Poland which was drawn in the aftermath of World War II. The line is formed primarily by the Oder and Lusatian Neisse rivers, and meets the Baltic Sea west of the seaport cities of Szczecin and Świnoujście...

, equal in size to the Soviet occupation zone, was handed over to Poland and the Soviet Union for defacto annexation. The millions of Germans still remaining in these areas were over a period of several years expelled and replaced by Polish and Soviet settlers (see Expulsion of Germans after World War II
Expulsion of Germans after World War II
The later stages of World War II, and the period after the end of that war, saw the forced migration of millions of German nationals and ethnic Germans from various European states and territories, mostly into the areas which would become post-war Germany and post-war Austria...

). Estimates of casualties from the expulsion range from hundreds of thousands to several million. In the GDR the euphemism "resettlement" was officially used to describe this event, in order to tone down hostility towards its fellow Eastern Bloc government in Poland, and the Soviet Union, which endorsed the scheme.

The social effects of rape

Norman Naimark
Norman Naimark
Norman M. Naimark is an American historian, and author who specializes in modern Eastern European history, and genocide and ethnic cleansing in the region....

 writes in "The Russians in Germany: A History of the Soviet Zone of Occupation, 1945-1949." that although the exact number of women and girls who were raped by members of the Red Army
Red Army
The Workers' and Peasants' Red Army started out as the Soviet Union's revolutionary communist combat groups during the Russian Civil War of 1918-1922. It grew into the national army of the Soviet Union. By the 1930s the Red Army was among the largest armies in history.The "Red Army" name refers to...

 in the months preceding and years following the capitulation will never be known, their numbers are likely in the hundreds of thousands, quite possibly as high as the 20,000,000 victims estimate made by Barbara Johr, in "Befreier und Befreite". Many of these victims were raped repeatedly. Naimark states that not only did each victim have to carry the trauma with her for the rest of her life, it inflicted a massive collective trauma
Collective trauma
A collective trauma is a traumatic psychological effect shared by a group of people of any size, up to and including an entire society. Traumatic events witnessed by an entire society can stir up collective sentiment, often resulting in a shift in that society's culture and mass actions.Well known...

 on the East German nation. Naimark concludes "The social psychology of women and men in the Soviet zone of occupation was marked by the crime of rape from the first days of occupation, through the founding of the GDR in the autumn of 1949, until - one could argue - the present."

Reparations

Each occupation power assumed rule in its zone by June 1945. The powers originally pursued a common German policy, focused on denazification
Denazification
Denazification was an Allied initiative to rid German and Austrian society, culture, press, economy, judiciary, and politics of any remnants of the National Socialist ideology. It was carried out specifically by removing those involved from positions of influence and by disbanding or rendering...

 and demilitarization in preparation for the restoration of a democratic German nation-state. Over time however the western zones and the Soviet zone drifted apart economically, not least because of the Soviets' much greater use of disassembly of German industry under its control as a form of reparations
War reparations
War reparations are payments intended to cover damage or injury during a war. Generally, the term war reparations refers to money or goods changing hands, rather than such property transfers as the annexation of land.- History :...

. Reparations were officially agreed among the Allies from 2 August 1945, with 'removals' prior to this date not included. According to Soviet Foreign Ministry data, Soviet troops organised in specialised "trophy" battalions organised removals of 1.28m tons of materials and 3.6m tons of equipment (excluding large quantities of agricultural produce). No agreement on reparations could be reached at the Potsdam Conference, but by December 1947 it was clear that Western governments were unwilling to accede to the Soviet request for $10bn in reparations (which the Soviets placed into perspective by calculating total war damage of $128bn).(In contrast the Germans estimate a total loss of German property, due to the border changes promoted by the USSR and the population expulsions, of 355.3 billion Deutschmarks). As a result the Soviet occupation sought to extract the $10bn from its occupation zone in eastern Germany, in addition to the trophy removals; Naimark (1995) estimates $10bn to have been transferred in material form by the early 1950s, including in 1945 and 1946 over 17,000 factories, amounting to a third of the productive capital of the eastern occupation zone.

In the western zones dismantling and or destruction of German industry continued until 1951 in accordance to the, several times modified, "German level of industry" agreement agreed upon in connection to the Potsdam conference
Potsdam Conference
The Potsdam Conference was held at Cecilienhof, the home of Crown Prince Wilhelm Hohenzollern, in Potsdam, occupied Germany, from 16 July to 2 August 1945. Participants were the Soviet Union, the United Kingdom, and the United States...

 whereby Germany was to be treated as a single unit and to be converted into a nation of "agricultural and light industry economy". By the end of 1948 the U.S. had dismantled or destroyed all war related manufacturing capability in its occupation zone.http://germanhistorydocs.ghi-dc.org/docpage.cfm?docpage_id=3406 In accordance with the agreements with the USSR shipment of dismantled industrial installations from the west began on March 31, 1946. Under the terms of the agreement the Soviet Union would in return ship raw materials such as food and timber to the western zones. In view of the Soviet failure to do so the U.S. temporarily halted shipments east (although they were never resumed), although it was later shown that although utilized for cold war propaganda reasons the main reason for halting shipments east was not the behavior of the USSR but rather the recalcitrant behavior of France. Examples of material received by the U.S.S.R. were
equipment from the Kugel-Fischer ballbearing plant at Schweinfurt
Schweinfurt
Schweinfurt is a city in the Lower Franconia region of Bavaria in Germany on the right bank of the canalized Main, which is here spanned by several bridges, 27 km northeast of Würzburg.- History :...

, the Daimler-Benz
Daimler-Benz
Daimler-Benz AG was a German manufacturer of automobiles, motor vehicles, and internal combustion engines; founded in 1926. An Agreement of Mutual Interest - which was valid until year 2000 - was signed on 1 May 1924 between Karl Benz's Benz & Cie., and Daimler Motoren Gesellschaft, which had...

 underground aircraft-engine plant at Obrigheim
Obrigheim
Obrigheim is a town in the district of Neckar-Odenwald-Kreis, in Baden-Württemberg, Germany....

, the Deschimag shipyards at Bremen-Weser, and the Gendorf powerplant.http://germanhistorydocs.ghi-dc.org/docpage.cfm?docpage_id=3403,http://images.library.wisc.edu/History/EFacs/GerRecon/omg1946n039/reference/history.omg1946n039.i0007.pdf

Military industries and those owned by the state, by Nazi
Nazism
Nazism, the common short form name of National Socialism was the ideology and practice of the Nazi Party and of Nazi Germany...

 activists, and by war criminals were confiscated by the Soviet occupation authority. These industries amounted to approximately 60% of total industrial production in the Soviet zone. Most heavy industry (constituting 20% of total production) was claimed by the Soviet Union as reparations, and Soviet joint stock companies (German: Sowjetische Aktiengesellschaften -SAG-) were formed. The remaining confiscated industrial property was nationalized
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

, leaving 40% of total industrial production to private enterprise.

Agrarian reforms

The agrarian reform ("Bodenreform") expropriated all land belonging to former Nazis and war criminals and generally limited ownership to 1 km². Some 500 Junker
Junker
A Junker was a member of the landed nobility of Prussia and eastern Germany. These families were mostly part of the German Uradel and carried on the colonization and Christianization of the northeastern European territories during the medieval Ostsiedlung. The abbreviation of Junker is Jkr...

 estates were converted into collective people's farms (German: Landwirtschaftliche Produktionsgenossenschaft
Landwirtschaftliche Produktionsgenossenschaft
The German expression Landwirtschaftliche Produktionsgenossenschaft , or — more commonly — its acronym LPG was the official designation for large, collectivised farms in the former East Germany, corresponding to Soviet Kolkhoz.The collectivisation of private and state owned agricultural...

 -LPG-
), and more than 30,000 km² were distributed among 500,000 peasant farmers, agricultural laborers, refugees. Also state farms were set up, called Volkseigenes Gut
Volkseigenes Gut
The Volkseigenes Gut was a state-owned farm in the Communist German Democratic Republic , corresponding to the Soviet Sovkhoz and the Państwowe Gospodarstwo Rolne in the People's Republic of Poland...

 (State Owned Property).

Political tensions

Growing economic differences combined with developing political tensions between the USA and the Soviet Union (which would eventually develop into the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

) and manifested in the refusal in 1947 of the SMAD to take part in the USA's Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

. In March 1948, the United States, Britain, and France met in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 and agreed to unite the Western zones and to establish a West German republic
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....

. The Soviet Union responded by leaving the Allied Control Council and prepared to create an East German state. The division of Germany was made clear with the currency reform of 20 June 1948, which was limited to the western zones. Three days later a separate currency reform was introduced in the Soviet zone. The introduction of the western Deutsche Mark to the western sectors of Berlin against the will of the Soviet supreme commander, led the Soviet Union to introduce the Berlin Blockade
Berlin Blockade
The Berlin Blockade was one of the first major international crises of the Cold War and the first resulting in casualties. During the multinational occupation of post-World War II Germany, the Soviet Union blocked the Western Allies' railway and road access to the sectors of Berlin under Allied...

 in an attempt to gain control of the whole of Berlin. The Western Allies decided to supply Berlin via an airbridge
Airbridge (logistics)
An airbridge is the route and means of delivering material from one place to another by an airlift.An airbridge is the means by which an airhead is kept supplied by overflying enemy held territory...

, which lasted 11 months, until the Soviet Union lifted the blockade on 12 May 1949.

Political developments

An SMAD decree
Decree
A decree is a rule of law issued by a head of state , according to certain procedures . It has the force of law...

 of June 10 granted permission for the formation of antifascist democratic political parties in the Soviet zone; elections to new state legislatures were scheduled for October 1946. A democratic-antifascist coalition, which included the KPD
Communist Party of Germany
The Communist Party of Germany was a major political party in Germany between 1918 and 1933, and a minor party in West Germany in the postwar period until it was banned in 1956...

, the SPD
Social Democratic Party of Germany
The Social Democratic Party of Germany is a social-democratic political party in Germany...

, the new Christian Democratic Union
Christian Democratic Union (East Germany)
The Christian Democratic Union of Germany ) was an East German political party founded in 1945. It was part of the National Front with the Socialist Unity Party of Germany until 1989....

 (Christlich-Demokratische Union—CDU), and the Liberal Democratic Party of Germany
Liberal Democratic Party of Germany
The Liberal Democratic Party of Germany ) was a political party in East Germany. Like the other allied parties of the SED in the National Front it had 52 representatives in the Volkskammer.-Foundation:...

 (Liberal Demokratische Partei Deutschlands—LDPD), was formed in July 1945. The KPD (with 600,000 members, led by Wilhelm Pieck
Wilhelm Pieck
Friedrich Wilhelm Reinhold Pieck was a German politician and a Communist. In 1949, he became the first President of the German Democratic Republic, an office abolished upon his death. He was succeeded by Walter Ulbricht, who served as Chairman of the Council of States.-Biography:Pieck was born to...

) and the SPD in East Germany (with 680,000 members, led by Otto Grotewohl
Otto Grotewohl
Otto Grotewohl was a German politician and prime minister of the German Democratic Republic from 1949 until his death. According to Roth , "He was a figurehead who led various economic commissions, lobbied the Soviets for increased aid, and conducted foreign policy tours in the attempt to break...

), which was under strong pressure from the Communists, merged in April 1946 to form the Socialist Unity Party of Germany
Socialist Unity Party of Germany
The Socialist Unity Party of Germany was the governing party of the German Democratic Republic from its formation on 7 October 1949 until the elections of March 1990. The SED was a communist political party with a Marxist-Leninist ideology...

 (Sozialistische Einheitspartei Deutschlands—SED) under pressure from the occupation authorities. In the October 1946 elections, the SED polled approximately 50% of the vote in each state in the Soviet zone. However, a truer picture of the SED's support was revealed in Berlin, which was still undivided. The Berlin SPD managed to preserve its independence and, running on its own, polled 48.7% of the vote while the SED, with 19.8%, was third in the voting behind the SPD and the CDU.

In May 1949, elections were held in the Soviet zone for a People's Congress to draft a constitution for a separate East German state. However, voters were only allowed to approve or reject slates of candidates drawn from the so-called anti-fascist coalition. Communists dominated this slate, thus allowing the SED to predetermine the composition of the People's Congress. According to official results, two-thirds of voters approved the unity lists.

The SED modelled itself as a Soviet-style "party of the new type". To that end, German communist Walter Ulbricht
Walter Ulbricht
Walter Ulbricht was a German communist politician. As First Secretary of the Socialist Unity Party from 1950 to 1971 , he played a leading role in the creation of the Weimar-era Communist Party of Germany and later in the early development and...

 became first secretary of the SED, and the Politburo, Secretariat, and Central Committee were formed. According to the Leninist principle of democratic centralism
Democratic centralism
Democratic centralism is the name given to the principles of internal organization used by Leninist political parties, and the term is sometimes used as a synonym for any Leninist policy inside a political party...

, each party body was controlled by its members. Ulbricht, as party chief, carried out the will of the members of his party. The SED committed itself ideologically to Marxism-Leninism
Marxism-Leninism
Marxism–Leninism is a communist ideology, officially based upon the theories of Marxism and Vladimir Lenin, that promotes the development and creation of a international communist society through the leadership of a vanguard party over a revolutionary socialist state that represents a dictatorship...

 and the international class struggle.

Many former members of the SPD and some communist advocates of a social-democratic road to socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

 were purged from the SED. The middle-class CDU and LDPD were weakened by the creation of two new parties, the National Democratic Party of Germany
National Democratic Party of Germany (East Germany)
The National Democratic Party of Germany was an East German political party that acted as an organisation for former members of the NSDAP, the Wehrmacht and middle classes...

 (Nationaldemokratische Partei Deutschlands—NDPD) and the Democratic Peasants' Party of Germany (Demokratische Bauernpartei Deutschlands—DBD). The SED accorded political representation to mass organizations and, most significant, to the party-controlled Free German Trade Union Federation
Free German Trade Union Federation
The Free German Trade Union Federation, in German Freier Deutscher Gewerkschaftsbund , was the trade union federation in East Germany. It was part of the National Front and had representatives in the Volkskammer....

 (Freier Deutscher Gewerkschaftsbund—FDGB).

Incidentally, the party system was designed to allow reentry of only those former NSDAP adherents who had earlier decided to join the National Front
National Front (East Germany)
The National Front of the German Democratic Republic was an alliance of political parties and mass organisations in East Germany...

, which was originally formed by emigrants and prisoners of war in the Soviet Union during World War II. Political denazification
Denazification
Denazification was an Allied initiative to rid German and Austrian society, culture, press, economy, judiciary, and politics of any remnants of the National Socialist ideology. It was carried out specifically by removing those involved from positions of influence and by disbanding or rendering...

 in the Soviet zone was thus handled rather more transparently than in the Western zones, where the issue soon came second to considerations of practicality or even just privacy.

In November 1948, the German Economic Commission
German Economic Commission
The German Economic Commission was the top administrative body in the Soviet Occupation Zone of Germany prior to the creation of the German Democratic Republic ....

 (Deutsche Wirtschaftskomission—DWK), including antifascist bloc representation, assumed administrative authority. Five weeks after declaration of the western Federal Republic of Germany (better known as West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....

), on October 7, 1949, the DWK formed a provisional government and proclaimed establishment of the German Democratic Republic (East Germany). Wilhelm Pieck
Wilhelm Pieck
Friedrich Wilhelm Reinhold Pieck was a German politician and a Communist. In 1949, he became the first President of the German Democratic Republic, an office abolished upon his death. He was succeeded by Walter Ulbricht, who served as Chairman of the Council of States.-Biography:Pieck was born to...

, a party leader, was elected first president. On October 9, the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 withdrew her East Berlin
East Berlin
East Berlin was the name given to the eastern part of Berlin between 1949 and 1990. It consisted of the Soviet sector of Berlin that was established in 1945. The American, British and French sectors became West Berlin, a part strongly associated with West Germany but a free city...

 headquarters, and subsequently it outwardly surrendered the functions of the military government to the new German state.

SED as leading party

The SED controlled the National Front coalition, a federation of all political parties and mass organizations that preserved political pluralism. The 1949 constitution formally established a democratic federal republic and created the Upper house
Upper house
An upper house, often called a senate, is one of two chambers of a bicameral legislature, the other chamber being the lower house; a legislature composed of only one house is described as unicameral.- Possible specific characteristics :...

 which was called Landerkammer
Länderkammer
The Länderkammer was one of the two legislative chambers of the German Democratic Republic from 1949, when the GDR was formed, until 1952, at which time it was largely sidelined, when the five Länder of the GDR were abolished and replaced with smaller administrative regions. The Länderkammer...

 (States Chamber) and the Volkskammer
Volkskammer
The People's Chamber was the unicameral legislature of the German Democratic Republic . From its founding in 1949 until the first free elections on 18 March 1990, all members of the Volkskammer were elected on a slate controlled by the Socialist Unity Party of Germany , called the National Front...

 (People's Chamber). The Volkskammer, according to the East German constitution
Constitution of the German Democratic Republic
East Germany was founded in 1949 and was absorbed into the Federal Republic of Germany on 3 October 1990. Its original constitution was promulgated on 7 October 1949. It was heavily based on the "Weimarer Reichsverfassung", such that the GDR would be a federal and democratic republic...

 the highest state body, was vested with legislative sovereignty. The SED controlled the Council of Ministers
Ministerrat
The Council of Ministers of the German Democratic Republic was the chief executive body of East Germany from November 1950 until the GDR was unified with the Federal Republic of Germany on 3 October 1990...

  and reduced the legislative function of the Volkskammer to that of acclamation. Election to the Volkskammer and the state legislatures (later replaced by district legislatures) was based on a joint ballot prepared by the National Front; voters could register their approval or disapproval.

All members of the SED who were active in state organs carried out party resolutions. The State Security Service (Staatssicherheitsdienst, better known as the Stasi
Stasi
The Ministry for State Security The Ministry for State Security The Ministry for State Security (German: Ministerium für Staatssicherheit (MfS), commonly known as the Stasi (abbreviation , literally State Security), was the official state security service of East Germany. The MfS was headquartered...

) and the Ministry of State Security acted as a counterpart to Western intelligence agencies, acting in the same functions.

The Third SED Party Congress convened in July 1950 and emphasized industrial progress. The industrial sector, employing 40% of the working population, was subjected to further nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

, which resulted in the formation of the People's Enterprises (German: Volkseigener Betrieb
Volkseigener Betrieb
The Volkseigener Betrieb was the legal form of industrial enterprise in East Germany...

--VEB
). These enterprises incorporated 75% of the industrial sector. The First Five-Year Plan (1951–55) introduced centralized state planning
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...

; it stressed high production quotas for heavy industry and increased labor productivity. The pressures of the plan caused an exodus of East German citizens to West Germany
Republikflucht
"Republikflucht" and "Republikflüchtling" were the terms used by authorities in the German Democratic Republic to describe the process of and the person leaving the GDR for a life in West Germany or any other Western country .The term...

. The second Party Conference (less important than Party Congress) convened in July 9–12, 1952. 1565 delegates, 494 guest-delegates and over 2500 guests from the GDR and from many countries in the world participated in it. In the conference a new economic policy was adpoted, "Planned Construction of Socialism". The plan called to strengthen the state-owned sector of the economy, further to implement the principles of uniform socialist planning and to use the economic laws of socialism systematically.

Under a law passed by the Volkskammer
Volkskammer
The People's Chamber was the unicameral legislature of the German Democratic Republic . From its founding in 1949 until the first free elections on 18 March 1990, all members of the Volkskammer were elected on a slate controlled by the Socialist Unity Party of Germany , called the National Front...

 in 1950, the age at which Germany's youth may reject parental supervision was lowered from 21 to 18. The Churches, while nominally assured of religious freedom, were, nevertheless, subjected to considerable pressure. To retaliate, Cardinal von Preysing, Bishop of Berlin, put the SED
Socialist Unity Party of Germany
The Socialist Unity Party of Germany was the governing party of the German Democratic Republic from its formation on 7 October 1949 until the elections of March 1990. The SED was a communist political party with a Marxist-Leninist ideology...

 in East Germany under an Episcopal ban. There were also other indications of opposition, even from within the government itself. In the fall of 1950 several prominent members of the SED were expelled and arrested as "saboteurs" or "for lacking trust in the Soviet Union." Among them were the Deputy Minister of Justice, Helmut Brandt; the Vice-President of the Volkskammer
Volkskammer
The People's Chamber was the unicameral legislature of the German Democratic Republic . From its founding in 1949 until the first free elections on 18 March 1990, all members of the Volkskammer were elected on a slate controlled by the Socialist Unity Party of Germany , called the National Front...

, Joseph Rambo; Bruno Foldhammer, deputy to Gerhard Eisler; and the editor, Lex Ende. At the end of 1954 the draft of a new family code was published which aimed at destroying all parental influence.

In 1951 monthly emigration figures fluctuated between 11,500 and 17,000. By 1953 an average of 37,000 men, women and children were leaving each month.

June 17, 1953

Stalin died in March 1953. In June the SED, hoping to give workers an improved standard of living, announced the New Course
New Course
The New Course was a Soviet economic policy that aimed to improve the standard of living and to increase the availability of consumer goods in East Germany. There were three major thrusts of the new course. Improvement of consumer goods, the end of terror, and a relaxation of ideological...

 which replaced the Planned Construction of Socialism. The New Course in East Germany was based on the economic policy initiated by Georgi Malenkov in the Soviet Union. Malenkov's policy, which aimed at improvement in the standard of living, stressed a shift in investment toward light industry and trade and a greater availability of consumer
Consumerism
Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods and services in ever greater amounts. The term is often associated with criticisms of consumption starting with Thorstein Veblen...

 goods. The SED, in addition to shifting emphasis from heavy industry to consumer goods, initiated a program for alleviating economic hardships. This led to a reduction of delivery quotas and taxes, the availability of state loans to private business, and an increase in the allocation of production material.

While the New Course
New Course
The New Course was a Soviet economic policy that aimed to improve the standard of living and to increase the availability of consumer goods in East Germany. There were three major thrusts of the new course. Improvement of consumer goods, the end of terror, and a relaxation of ideological...

 increased the consumer goods workers could get, there were still high production quotas. When work quotas were raised in 1953, it led to the 1953 Uprising
Uprising of 1953 in East Germany
The Uprising of 1953 in East Germany started with a strike by East Berlin construction workers on June 16. It turned into a widespread anti-Stalinist uprising against the German Democratic Republic government the next day....

. Strikes and demonstrations happened in major industrial centers. The workers demanded economic reforms. The Volkspolizei
Volkspolizei
The Volkspolizei , or VP, were the national police of the German Democratic Republic . The Volkspolizei were responsible for most law enforcement in East Germany, but its organisation and structure were such that it could be considered a paramilitary force as well...

 and the Soviet Army suppressed the uprising, in which approximately 100 participants were killed.

Growing Sovereignty

In 1954 the Soviet Union granted East Germany sovereignty, and the Soviet Control Commission in Berlin was disbanded. By this time, reparations payments had been completed, and the SAGs had been restored to East German ownership. The five states formerly constituting the Soviet occupation zone also had been dissolved and replaced by fifteen districts (Bezirke) in 1952; the United States, Britain, and France did not recognize the fifteenth district, East Berlin. East Germany began active participation in the Council for Mutual Economic Assistance (Comecon) in 1950. In 1955 Prime Minister
Ministerrat
The Council of Ministers of the German Democratic Republic was the chief executive body of East Germany from November 1950 until the GDR was unified with the Federal Republic of Germany on 3 October 1990...

 Grotewohl
Otto Grotewohl
Otto Grotewohl was a German politician and prime minister of the German Democratic Republic from 1949 until his death. According to Roth , "He was a figurehead who led various economic commissions, lobbied the Soviets for increased aid, and conducted foreign policy tours in the attempt to break...

 was invited to Moscow and, between September 17 and 20, concluded a treaty with the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 which entered into force on October 6. According to its terms the German Democratic Republic was henceforth "free to decide questions of its internal and foreign policy, including its relations with the German Federal Republic as well as with other states." Although temporarily Soviet forces would remain in the country on conditions to be agreed upon, they would not interfere in the internal conditions of its social and political life. The two governments would strengthen the economic, scientific-technical, and cultural relations between them and would consult with each other on questions affecting their interests.

In 1956 the National People's Army
National People's Army
The National People’s Army were the armed forces of the German Democratic Republic .The NVA was established in 1956 and disestablished in 1990. There were frequent reports of East German advisors with Communist African countries during the Cold War...

 (Nationale Volksarmee—NVA) was created, and East Germany became a member of the Warsaw Pact
Warsaw Pact
The Warsaw Treaty Organization of Friendship, Cooperation, and Mutual Assistance , or more commonly referred to as the Warsaw Pact, was a mutual defense treaty subscribed to by eight communist states in Eastern Europe...

.

Collectivization and nationalization of agriculture and industry, 1956–63

In 1956, at the 20th Congress of the Communist Party of the Soviet Union
Communist Party of the Soviet Union
The Communist Party of the Soviet Union was the only legal, ruling political party in the Soviet Union and one of the largest communist organizations in the world...

, First Secretary Nikita Khrushchev
Nikita Khrushchev
Nikita Sergeyevich Khrushchev led the Soviet Union during part of the Cold War. He served as First Secretary of the Communist Party of the Soviet Union from 1953 to 1964, and as Chairman of the Council of Ministers, or Premier, from 1958 to 1964...

 repudiated Stalinism
Stalinism
Stalinism refers to the ideology that Joseph Stalin conceived and implemented in the Soviet Union, and is generally considered a branch of Marxist–Leninist ideology but considered by some historians to be a significant deviation from this philosophy...

. Around this time, an academic intelligentsia
Intelligentsia
The intelligentsia is a social class of people engaged in complex, mental and creative labor directed to the development and dissemination of culture, encompassing intellectuals and social groups close to them...

 within the SED leadership demanded reform. To this end, Wolfgang Harich
Wolfgang Harich
Wolfgang Harich was a philosopher and journalist in East Germany.A deserter from the German army in World War II and a member of the Socialist Unity Party of Germany, Harich became a professor of philosophy at Humboldt University in 1949...

 issued a platform advocating radical changes in East Germany. In late 1956, he and his associates were quickly purged from the SED ranks and imprisoned.

An SED party plenum in July 1956 confirmed Ulbricht's leadership and presented the Second Five-Year Plan (1956–60). The plan employed the slogan "modernization, mechanization, and automation" to emphasize the new focus on technological progress. At the plenum, the regime announced its intention to develop nuclear energy, and the first nuclear reactor in East Germany was activated in 1957. The government increased industrial production quotas by 55% and renewed emphasis on heavy industry
Heavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...

.

The Second Five-Year Plan committed East Germany to accelerated efforts toward agricultural collectivization and nationalization and completion of the nationalization of the industrial
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 sector. By 1958 the agricultural sector still consisted primarily of the 750,000 privately owned farms that comprised 70% of all arable land; only 6,000 Agricultural Cooperatives (Landwirtschaftliche Produktionsgenossenschaften—LPGs) had been formed. In 1958–59 the SED placed quotas on private farmers and sent teams to villages in an effort to encourage voluntary collectivization. In November and December 1959 some law-breaking farmers were arrested by the SSD.

By mid-1960 nearly 85% of all arable land was incorporated in more than 19,000 LPGs; state farms comprised another 6%. By 1961 the socialist sector produced 90% of East Germany's agricultural products. An extensive economic management reform by the SED in February 1958 included the transfer of a large number of industrial ministries to the State Planning Commission. In order to accelerate the nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 of industry, the SED offered entrepreneurs 50-percent partnership incentives for transforming their firms into VEBs. At the close of 1960, private enterprise controlled only 9% of total industrial production. Production Cooperatives (Produktionsgenossenschaften—PGs) incorporated one-third of the artisan sector during 1960-61, a rise from 6% in 1958.

The Second Five-Year Plan encountered difficulties, and the regime replaced it with the Seven-Year Plan (1959–65). The new plan aimed at achieving West Germany's per capita production by the end of 1961, set higher production quotas, and called for an 85% increase in labor productivity. Emigration again increased, totaling 143,000 in 1959 and 199,000 in 1960. The majority of the emigrants were white collar workers, and 50% were under 25 years of age. The labor drain exceeded a total of 2.5 million citizens between 1949 and 1961.

New Economic System, 1963–70

The annual industrial growth rate declined steadily after 1959. The Soviet Union therefore recommended that East Germany implement the reforms of Soviet economist Evsei Liberman
Evsei Liberman
Evsei Liberman was a Soviet economist who lived in Kharkiv .He was a teacher at the Kharkiv Institute of Peoples Econome, the Kharkiv Institute of Engineering and Economy and the University of Kharkiv....

, an advocate of the principle of profitability and other market principles for communist economies. In 1963 Ulbricht adapted Liberman's theories and introduced the New Economic System
New Economic System
The New Economic System was an economic policy that was implemented by the ruling Socialist Unity Party of the German Democratic Republic in 1963. Its purpose was to replace the system of Five Year Plans which had been used to run the GDR's economy from 1951 onwards...

 (NES), an economic reform program providing for some decentralization in decision making and the consideration of market and performance criteria. The NES aimed at creating an efficient economic system and transforming East Germany into a leading industrial nation.

Under the NES, the task of establishing future economic development was assigned to central planning. Decentralization
Decentralization
__FORCETOC__Decentralization or decentralisation is the process of dispersing decision-making governance closer to the people and/or citizens. It includes the dispersal of administration or governance in sectors or areas like engineering, management science, political science, political economy,...

 involved the partial transfer of decision-making authority from the central State Planning Commission and National Economic Council to the Associations of People's Enterprises (Vereinigungen Volkseigener Betriebe, or VVBs), parent organizations intended to promote specialization within the same areas of production. The central planning authorities set overall production goals, but each VVB determined its own internal financing, utilization of technology, and allocation of manpower and resources. As intermediary bodies, the VVBs also functioned to synthesize information and recommendations from the VEBs. The NES stipulated that production decisions be made on the basis of profitability, that salaries reflect performance, and that prices respond to supply and demand.

The NES brought forth a new elite in politics as well as in management of the economy, and in 1963 Ulbricht announced a new policy regarding admission to the leading ranks of the SED. Ulbricht opened the Politburo and the Central Committee
Central Committee
Central Committee was the common designation of a standing administrative body of communist parties, analogous to a board of directors, whether ruling or non-ruling in the twentieth century and of the surviving, mostly Trotskyist, states in the early twenty first. In such party organizations the...

 to younger members who had more education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

 than their predecessors and who had acquired managerial and technical skills. As a consequence of the new policy, the SED elite
Elite
Elite refers to an exceptional or privileged group that wields considerable power within its sphere of influence...

 became divided into political and economic factions, the latter composed of members of the new technocratic
Technocracy (bureaucratic)
Technocracy is a form of government where technical experts are in control of decision making in their respective fields. Economists, engineers, scientists, health professionals, and those who have knowledge, expertise or skills would compose the governing body...

 elite. Because of the emphasis on professionalization
Professionalization
Professionalization is the social process by which any trade or occupation transforms itself into a true "profession of the highest integrity and competence." This process tends to involve establishing acceptable qualifications, a professional body or association to oversee the conduct of members...

 in the SED cadre policy after 1963, the composition of the mass membership changed: in 1967 about 250,000 members (14%) of the total 1.8 million SED membership had completed a course of study at a university
University
A university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is an organisation that provides both undergraduate education and postgraduate education...

, technical college, or trade school.

The SED emphasis on managerial and technical competence also enabled members of the technocratic elite to enter the top echelons of the state bureaucracy, formerly reserved for political dogmatists. Managers of the VVBs were chosen on the basis of professional training rather than ideological conformity. Within the individual enterprises, the number of professional positions and jobs for the technically skilled increased. The SED stressed education in managerial and technical sciences as the route to social advancement and material rewards. In addition, it promised to raise the standard of living for all citizens. From 1964 until 1967, real wage
Wage
A wage is a compensation, usually financial, received by workers in exchange for their labor.Compensation in terms of wages is given to workers and compensation in terms of salary is given to employees...

s increased, and the supply of consumer goods, including luxury items
Luxury good
Luxury goods are products and services that are not considered essential and associated with affluence.The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies...

, improved much.

Ulbricht in 1968 launched a spirited campaign to convince the Comecon states to intensify their economic development "by their own means." Domestically the East German regime replaced the NES with the Economic System of Socialism
Economic System of Socialism
The Economic System of Socialism was an economic policy implemented in East Germany between 1968–1970, led by General Secretary of the Socialist Unity Party Walter Ulbricht. It focused on high technology sectors in an attempt to make self-sufficient growth possible...

 (ESS), which focused on high technology sectors in order to make self-sufficient growth possible. Overall, centralized planning was reintroduced in the so-called structure-determining areas, which included electronics, chemicals, and plastics. Industrial combines were formed to integrate vertically industries involved in the manufacture of vital final products. Price subsidies were restored to accelerate growth in favored sectors. The annual plan for 1968 set production quotas in the structure-determining areas 2.6% higher than in the remaining sectors in order to achieve industrial growth in these areas. The state set the 1969–70 goals for high-technology sectors even higher. Failure to meet ESS goals resulted in the conclusive termination of the reform effort in 1970.

The Main Task

The Main Task, introduced by Honecker in 1971, formulated domestic policy for the 1970s. The program re-emphasized Marxism-Leninism and the international class struggle. During this period, the SED launched a massive propaganda campaign to win citizens to its Soviet-style socialism and to restore the "worker" to prominence. The Main Task restated the economic goal of industrial progress, but this goal was to be achieved within the context of centralized state planning. Consumer socialism—the new program featured in the Main Task—was an effort to magnify the appeal of socialism by offering special consideration for the material needs of the working class
Working class
Working class is a term used in the social sciences and in ordinary conversation to describe those employed in lower tier jobs , often extending to those in unemployment or otherwise possessing below-average incomes...

. The state extensively revamped wage policy and gave more attention to increasing the availability of consumer goods.

The regime also accelerated the construction of new housing and the renovation of existing apartments; 60% of new and renovated housing was allotted to working-class families. Rents, which were subsidized, remained extremely low. Because women constituted nearly 50% of the labor force, child-care facilities, including nurseries and kindergartens, were provided for the children of working mothers. Women in the labor force received salaried maternity leave which ranged from six months to one year. The state also increased retirement annuities.

Ulbricht Versus Détente

Ulbricht's foreign policy from 1967 to 1971 responded to the beginning of the era of détente
Détente
Détente is the easing of strained relations, especially in a political situation. The term is often used in reference to the general easing of relations between the Soviet Union and the United States in the 1970s, a thawing at a period roughly in the middle of the Cold War...

 with the West. Although détente offered East Germany the opportunity to overcome its isolation in foreign policy and to gain Western recognition as a sovereign state, the SED leader was reluctant to pursue a policy of rapprochement with West Germany. Both German states had retained the goal of future unification; however, both remained committed to their own irreconcilable political systems. The 1968 East German Constitution proclaimed the victory of socialism and restated the country's commitment to unification under communist leadership.

However, the SED leadership, although successful in establishing socialism in East Germany, had limited success in winning popular support for the repressive social system. In spite of the epithet "the other German miracle", the democratic politics and higher material progress of West Germany continued to attract East German citizens. Ulbricht feared that hopes for a democratic government or a reunification with West Germany would cause unrest among East German citizens, who since 1961 appeared to have come to terms with social and living conditions.

In the late 1960s, Ulbricht made the Council of State
Staatsrat
In the German Democratic Republic , the State Council was the collective head of state from 1960 to 1990.-Origins:...

 the main governmental organ. The 24-member, multiparty council, headed by Ulbricht and dominated by its fifteen SED representatives, generated a new era of political conservatism
Conservatism
Conservatism is a political and social philosophy that promotes the maintenance of traditional institutions and supports, at the most, minimal and gradual change in society. Some conservatives seek to preserve things as they are, emphasizing stability and continuity, while others oppose modernism...

. Foreign and domestic policies in the final years of the Ulbricht era reflected strong commitment to an aggressive strategy toward the West and toward Western ideology. Ulbricht's foreign policy focused on strengthening ties with Warsaw Pact countries and on organizing opposition to détente. In 1967 he persuaded Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...

, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...

, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

, and Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...

 to conclude bilateral mutual assistance treaties with East Germany. The Ulbricht Doctrine
Ulbricht Doctrine
The Ulbricht Doctrine, named after East German leader Walter Ulbricht, was the assertion that normal diplomatic relations between East Germany and West Germany could only occur if both states fully recognised each other's sovereignty...

, subsequently signed by these states, committed them to reject the normalization of relations with West Germany unless Bonn
Bonn
Bonn is the 19th largest city in Germany. Located in the Cologne/Bonn Region, about 25 kilometres south of Cologne on the river Rhine in the State of North Rhine-Westphalia, it was the capital of West Germany from 1949 to 1990 and the official seat of government of united Germany from 1990 to 1999....

 formally recognized East German sovereignty.

Ulbricht also encouraged the abrogation of Soviet bloc relations with the industrialized West, and in 1968 he launched a spirited campaign to convince the Comecon states to intensify their economic development "by their own means." Considering claims for freedom and democracy
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...

 within the Soviet bloc a danger to its domestic policies, the SED, from the beginning, attacked Prague's new political course, which resulted in intervention by the Soviet military and other Warsaw Pact contingents in 1968.

In August 1970, the Soviet Union and West Germany signed the Moscow Treaty, in which the two countries pledged nonaggression in their relations and in matters concerning European and international security and confirmed the Oder-Neisse line
Oder-Neisse line
The Oder–Neisse line is the border between Germany and Poland which was drawn in the aftermath of World War II. The line is formed primarily by the Oder and Lusatian Neisse rivers, and meets the Baltic Sea west of the seaport cities of Szczecin and Świnoujście...

. Moscow subsequently pressured East Germany to begin bilateral talks with West Germany. Ulbricht resisted, further weakening his leadership, which had been damaged by the failure of the ESS. In May 1971, the SED Central Committee chose Erich Honecker
Erich Honecker
Erich Honecker was a German communist politician who led the German Democratic Republic as General Secretary of the Socialist Unity Party from 1971 until 1989, serving as Head of State as well from Willi Stoph's relinquishment of that post in 1976....

 to succeed Ulbricht as the party's first secretary. Although Ulbricht was allowed to retain the chairmanship of the Council of State until his death in 1973, the office had been reduced in importance.

Honecker and East-West Rapprochement

Honecker combined loyalty to the Soviet Union with flexibility toward détente. At the Eighth Party Congress in June 1971, he presented the political program of the new regime. In his reformulation of East German foreign policy, Honecker renounced the objective of a unified Germany and adopted the "defensive" position of ideological Abgrenzung (demarcation or separation). Under this program, the country defined itself as a distinct "socialist state
Socialist state
A socialist state generally refers to any state constitutionally dedicated to the construction of a socialist society. It is closely related to the political strategy of "state socialism", a set of ideologies and policies that believe a socialist economy can be established through government...

" and emphasized its allegiance to the Soviet Union. Abgrenzung, by defending East German sovereignty, in turn contributed to the success of détente negotiations that led to the Four Power Agreement on Berlin
Four Power Agreement on Berlin
The Four Power Agreement on Berlin also known as the Berlin Agreement or the Quadripartite Agreement on Berlin was agreed on 3 September 1971 by the four wartime allied powers, represented by their Ambassadors...

 (Berlin Agreement) in 1971 and the Basic Treaty with West Germany in December 1972.

The Berlin Agreement and the Basic Treaty normalized relations between East Germany and West Germany. The Berlin Agreement (effective June 1972), signed by the United States, Britain, France, and the Soviet Union, protected trade and travel relations between West Berlin and West Germany and aimed at improving communications between East Berlin and West Berlin. The Soviet Union stipulated, however, that West Berlin would not be incorporated into West Germany. The Basic Treaty (effective June 1973) politically recognized two German states, and the two countries pledged to respect one another's sovereignty. Under the terms of the treaty, diplomatic missions were to be exchanged and commercial, tourist, cultural, and communications relations established. In September 1973, both countries joined the United Nations, and thus East Germany received its long-sought international recognition.

Two German states

From the mid-1970s, East Germany remained poised between East and West. The 1974 amendment to the Constitution deleted all references to the "German nation" and "German unity" and designated East Germany "a socialist nation-state of workers and peasants" and "an inseparable constituent part of the socialist community of states." However, the SED leadership had little success in inculcating East Germans with a sense of ideological identification with the Soviet Union. Honecker, conceding to public opinion, devised the formula "citizenship, GDR; nationality, German." In so doing, the SED first secretary acknowledged the persisting psychological and emotional attachment of East German citizens to German traditions and culture and, by implication, to their German neighbors in West Germany.

Although Abgrenzung constituted the foundation of Honecker's policy, détente strengthened ties between the two German states. Between 5 and 7 million West Germans and West Berliners visited East Germany each year. Telephone and postal communications between the two countries were significantly improved. Personal ties between East German and West German families and friends were being restored, and East German citizens had more direct contact with West German politics and material affluence, particularly through radio and television. West Germany was East Germany's supplier of high-quality consumer goods, including luxury items, and the latter's citizens frequented both the Intershop
Intershop
Intershop was a chain of government-run retail stores in the German Democratic Republic in which only hard currencies could be used to purchase high-quality goods. The East German mark was not accepted as payment...

s, which sold goods for Western currency, and the Exquisit and Delikat shops, which sold imported goods for East German currency.

As part of the general détente between East and West, East Germany participated in the Commission on Security and Cooperation in Europe
Commission on Security and Cooperation in Europe
The Commission on Security and Cooperation in Europe , also known as the U.S. Helsinki Commission, is an independent U.S. Government agency created by Congress in 1976 to monitor and encourage compliance with the Helsinki Final Act and other OSCE commitments. It was established in 1976 pursuant to...

 in Europe and in July 1975 signed the Helsinki Final Act, which was to guarantee the regime's recognition of human rights. The Final Act's provision for freedom of movement elicited approximately 120,000 East German applications for permission to emigrate, but the applications were rejected.

GDR identity

From the beginning, the newly formed GDR tried to establish its own separate identity. Because of Marx's abhorrence of Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...

, the SED repudiated continuity between Prussia and the GDR. The SED destroyed the Junker manor houses, wrecked the Berlin city palace and removed the equestrian statue of Frederick the Great from East Berlin. Instead the SED focused on the progressive heritage of German history, including Thomas Müntzer
Thomas Muentzer
Thomas Müntzer was an early Reformation-era German theologian, who became a rebel leader during the Peasants' War. He turned against Luther with several anti-Lutheran writings, and supported the Anabaptists. In the Battle of Frankenhausen, Müntzer and his followers were defeated...

's role in the German Peasants' War
German Peasants' War
The German Peasants' War or Great Peasants' Revolt was a widespread popular revolt in the German-speaking areas of Central Europe, 1524–1526. At its height in the spring and summer of 1525, the conflict involved an estimated 300,000 peasants: contemporary estimates put the dead at 100,000...

 and the role played by the heroes of the class struggle during Prussia's industrialization. Nevertheless, as early as 1956 East Germany's Prussian heritage asserted itself in the NVA.

As a result of the Ninth Party Congress in May 1976, East Germany after 1976–77 considered its own history as the essence of German history, in which West Germany was only an episode. It laid claim to reformers such as Karl Freiherr vom Stein, Karl August von Hardenberg
Karl August von Hardenberg
Karl August Fürst von Hardenberg was a Prussian statesman and Prime Minister of Prussia. While during his late career he acquiesced to reactionary policies, earlier in his career he implemented a variety of Liberal reforms...

, Wilhelm von Humboldt
Wilhelm von Humboldt
Friedrich Wilhelm Christian Karl Ferdinand Freiherr von Humboldt was a German philosopher, government functionary, diplomat, and founder of Humboldt Universität. He is especially remembered as a linguist who made important contributions to the philosophy of language and to the theory and practice...

, and Gerhard von Scharnhorst
Gerhard von Scharnhorst
Gerhard Johann David Waitz von Scharnhorst was a general in Prussian service, Chief of the Prussian General Staff, noted for both his writings, his reforms of the Prussian army, and his leadership during the Napoleonic Wars....

. The statue of Frederick the Great was meanwhile restored to prominence in East Berlin. Honecker's references to the former Prussian king in his speeches reflected East Germany's official policy of revisionism toward Prussia, which also included Bismarck and the resistance group Red Band. East Germany also laid claim to the formerly maligned Martin Luther
Martin Luther
Martin Luther was a German priest, professor of theology and iconic figure of the Protestant Reformation. He strongly disputed the claim that freedom from God's punishment for sin could be purchased with money. He confronted indulgence salesman Johann Tetzel with his Ninety-Five Theses in 1517...

 and to the organizers of the Spartacus League, Karl Liebknecht
Karl Liebknecht
was a German socialist and a co-founder with Rosa Luxemburg of the Spartacist League and the Communist Party of Germany. He is best known for his opposition to World War I in the Reichstag and his role in the Spartacist uprising of 1919...

 and Rosa Luxemburg
Rosa Luxemburg
Rosa Luxemburg was a Marxist theorist, philosopher, economist and activist of Polish Jewish descent who became a naturalized German citizen...

.

Dissidents

In spite of détente
Détente
Détente is the easing of strained relations, especially in a political situation. The term is often used in reference to the general easing of relations between the Soviet Union and the United States in the 1970s, a thawing at a period roughly in the middle of the Cold War...

, the Honecker regime remained committed to Soviet-style socialism and continued a strict policy toward dissidents. Nevertheless, a critical Marxist intelligentsia within the SED renewed the plea for democratic reform. Among them was the poet-singer Wolf Biermann
Wolf Biermann
Karl Wolf Biermann is a German singer-songwriter and former East German dissident.-Early life:Biermann's father, who worked on the Hamburg docks, was a German Jew and a member of the German Resistance....

, who with Robert Havemann
Robert Havemann
Robert Havemann was a chemist, and an East German dissident.He studied chemistry in Berlin and Munich from 1929 to 1933, and then later received a doctorate in physical chemistry from the Kaiser Wilhelm Institute....

 had led a circle of artists and writers advocating democratization; he was expelled from East Germany in November 1976 for dissident activities. Following Biermann's expulsion, the SED leadership disciplined more than 100 dissident intellectuals.

Despite the government's actions, East German writers began to publish political statements in the West German press and periodical literature. The most prominent example was Rudolf Bahro
Rudolf Bahro
Rudolf Bahro was a philosopher, political figure and author who was a noted East German dissident and who became a leader of the West German party The Greens...

's Die Alternative, which was published in West Germany in August 1977. The publication led to the author's arrest, imprisonment, and deportation to West Germany. In late 1977, a manifesto of the "League of Democratic Communists of Germany" appeared in the West German magazine Der Spiegel
Der Spiegel
Der Spiegel is a German weekly news magazine published in Hamburg. It is one of Europe's largest publications of its kind, with a weekly circulation of more than one million.-Overview:...

. The league, consisting ostensibly of anonymous middle- to high-ranking SED functionaries, demanded democratic reform in preparation for reunification.

Even after an exodus of artists in protest against Biermann's expulsion, the SED continued its repressive policy against dissidents. The state subjected literature, one of the few vehicles of opposition and nonconformism in East Germany, to ideological attacks and censorship. This policy led to an exodus of prominent writers, which lasted until 1981. The Lutheran Church also became openly critical of SED policies. Although in 1980-81 the SED intensified its censorship
Censorship
thumb|[[Book burning]] following the [[1973 Chilean coup d'état|1973 coup]] that installed the [[Military government of Chile |Pinochet regime]] in Chile...

 of church publications in response to the Polish Solidarity movement, it maintained, for the most part, a flexible attitude toward the church. The consecration of a church building in May 1981 in Eisenhüttenstadt
Eisenhüttenstadt
Eisenhüttenstadt is a town in the Oder-Spree district of Brandenburg, Germany at the border with Poland. The town was founded in 1950 alongside a new steel mill as a socialist model city and has a population of 32,214...

, which according to the SED leadership was not permitted to build a church owing to its status as a "socialist city", demonstrated this flexibility.

10th Party Congress, 1981

The 10th Party Congress, which took place in April 1981, focused on improving the economy, stabilizing the socialist system, achieving success in foreign policy, and strengthening relations with West Germany. Presenting the SED as the leading power in all areas of East German society, General Secretary (the title changed from First Secretary in 1976) Honecker emphasized the importance of educating loyal cadres in order to secure the party's position. He announced that more than one-third of all party members and candidates and nearly two-third of the party secretaries had completed a course of study at a university, technical college, or trade school and that four-fifths of the party secretaries had received training in a party school for more than a year.

Stating that a relaxation of "democratic centralism" was unacceptable, Honecker emphasized rigid centralism within the party. Outlining the SED's general course, the congress confirmed the unity of East Germany's economic and social policy on the domestic front and its absolute commitment to the Soviet Union in foreign policy. In keeping with the latter pronouncement, the SED approved the Soviet intervention in Afghanistan
Afghanistan
Afghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...

. The East German stance differed from that taken by the Yugoslav, Romanian, and Italian communists, who criticized the Soviet action.

The SED's Central Committee, which during the 1960s had been an advisory body, was reduced to the function of an acclamation body during the Tenth Party Congress. The Politburo and the Secretariat remained for the most part unchanged. In addition to policy issues, the congress focused on the new Five-Year Plan (1981–85), calling for higher productivity, more efficient use of material resources, and better quality products. Although the previous five-year plan had not been fulfilled, the congress again set very high goals.

Coffee crisis, 1976–79

Due to the strong German tradition of drinking coffee, coffee imports were one of the most important for consumers. A massive rise in coffee prices in 1976/77 led to a quadrupling of the annual costs of importing coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...

 compared to 1972-75. This caused severe financial problems for the GDR, which perennially lacked hard currency.

As a result, in the summer of 1977 the Politburo
Politburo
Politburo , literally "Political Bureau [of the Central Committee]," is the executive committee for a number of communist political parties.-Marxist-Leninist states:...

 withdrew most cheaper brands of coffee from sale, limited use in restaurants, and effectively withdrew its provision in public offices and state enterprises. In addition, an infamous new type of coffee was introduced, Mischkaffee (mixed coffee), which was 51% coffee and 49% a range of filler including chicory
Chicory
Common chicory, Cichorium intybus, is a somewhat woody, perennial herbaceous plant usually with bright blue flowers, rarely white or pink. Various varieties are cultivated for salad leaves, chicons , or for roots , which are baked, ground, and used as a coffee substitute and additive. It is also...

, rye
Rye
Rye is a grass grown extensively as a grain and as a forage crop. It is a member of the wheat tribe and is closely related to barley and wheat. Rye grain is used for flour, rye bread, rye beer, some whiskeys, some vodkas, and animal fodder...

, and sugar beet
Sugar beet
Sugar beet, a cultivated plant of Beta vulgaris, is a plant whose tuber contains a high concentration of sucrose. It is grown commercially for sugar production. Sugar beets and other B...

.

Unsurprisingly, the new coffee was generally detested for its awful taste, and the whole episode is informally known as the "coffee crisis". The crisis passed after 1978 as world coffee prices began to fall again, as well as increased supply through an agreement between the GDR and Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...

 - the latter becoming one of the world's largest coffee producers in the 1990s. However, the episode vividly illustrated the structural economic and financial problems of the GDR.

Developing international debt crisis

Although in the end political circumstances led to the collapse of the SED regime, the GDR's growing international (hard currency) debts were leading towards an international debt crisis within a year or two. Debts continued to grow in the course of the 1980s to over DM40 bn owed to western institutions, a sum not astronomical in absolute terms (the GDR's GDP was perhaps DM250bn) but much larger in relation to the GDR's capacity to export sufficient goods to the west to provide the hard currency to service these debts. An October 1989 paper prepared for the Politburo
Politburo
Politburo , literally "Political Bureau [of the Central Committee]," is the executive committee for a number of communist political parties.-Marxist-Leninist states:...

 (Schürer-Papier, after its principal author Gerhard Schürer) projected a need to increase export surplus from around DM2bn in 1990 to over DM11bn in 1995 in order to stabilise debt levels.

Much of the debt originated from attempts by the GDR to export its way out of its international debt problems, which required imports of components, technologies and raw materials; as well as attempts to maintain living standards through imports of consumer goods. The GDR was internationally competitive in some sectors such as mechanical engineering and printing technology. However the attempt to achieve a competitive edge in microchips not only failed, but swallowed increasing amounts of internal resources and hard currency. Another significant factor was the elimination of a ready source of hard currency through re-export of Soviet oil, which until 1981 was provided below world market prices. The resulting loss of hard currency income produced a noticeable dip in the otherwise steady improvement of living standards. (It was precisely this continuous improvement which was at risk due to the impending debt crisis; the Schürer-Papier's remedial plans spoke of a 25–30% reduction.)

Regime collapse, 1989

In May 1989, local government elections were held. The public reaction was one of anger, when it was revealed that National Front
National Front (East Germany)
The National Front of the German Democratic Republic was an alliance of political parties and mass organisations in East Germany...

 candidates had won the majority of seats, with 'only' 98.5% of the vote. In other words, despite popular support for opposition candidates, the poll had been massively rigged. Increasing numbers of citizens applied for exit visas, or left the country illegally. In August 1989, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

's reformist government removed its border restrictions with Austria — the first breach in the so-called "Iron Curtain
Iron Curtain
The concept of the Iron Curtain symbolized the ideological fighting and physical boundary dividing Europe into two separate areas from the end of World War II in 1945 until the end of the Cold War in 1989...

". In September 1989, more than 13,000 East Germans managed to escape to the West through Hungary. The Hungarian government told their furious East German counterparts that international treaties on refugees took precedence over a 1969 agreement between the two countries restricting freedom of movement. Thousands of East Germans also tried to reach the West by staging sit-ins at West German diplomatic facilities in other East European capitals, especially in Prague
Prague
Prague is the capital and largest city of the Czech Republic. Situated in the north-west of the country on the Vltava river, the city is home to about 1.3 million people, while its metropolitan area is estimated to have a population of over 2.3 million...

, Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...

. The GDR subsequently announced that it would provide special trains to carry these refugees to West Germany, claiming it was expelling "irresponsible antisocial traitors and criminals." http://www.worldbook.com/wc/popup?path=features/berlinwall&page=html/1989.htm&direct=yes Meanwhile, mass demonstrations in Dresden
Dresden
Dresden is the capital city of the Free State of Saxony in Germany. It is situated in a valley on the River Elbe, near the Czech border. The Dresden conurbation is part of the Saxon Triangle metropolitan area....

 and Leipzig
Leipzig
Leipzig Leipzig has always been a trade city, situated during the time of the Holy Roman Empire at the intersection of the Via Regia and Via Imperii, two important trade routes. At one time, Leipzig was one of the major European centres of learning and culture in fields such as music and publishing...

 demanded the legalization of opposition groups and democratic
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...

 reforms.
Virtually ignoring the problems facing the country, Honecker and the rest of the Politburo celebrated the 40th anniversary of the Republic in East Berlin on October 7. Like in past celebrations, soldiers marched on parade and missiles were driven by on large trucks, to display the Republic's weaponry. However, the parade proved to be a harbinger of things to come. With Mikhail Gorbachev
Mikhail Gorbachev
Mikhail Sergeyevich Gorbachev is a former Soviet statesman, having served as General Secretary of the Communist Party of the Soviet Union from 1985 until 1991, and as the last head of state of the USSR, having served from 1988 until its dissolution in 1991...

 and most of the Warsaw Pact leaders in attendance, members of the FDJ were heard chanting, "Gorby, help us! Gorby, save us!"

That same night, the first of many large demonstrations occurred in East Berlin, the first mass demonstration in the capital itself. Similar demonstrations for freedom of speech and of the press erupted across the country, and increased pressure on the regime to reform. One of the largest occurred in Leipzig
Leipzig
Leipzig Leipzig has always been a trade city, situated during the time of the Holy Roman Empire at the intersection of the Via Regia and Via Imperii, two important trade routes. At one time, Leipzig was one of the major European centres of learning and culture in fields such as music and publishing...

. Troops had been ordered there, only to be pulled back by local party officials. In an attempt to ward off the threat of popular uprising, the Politburo ousted Honecker on October 18.

Honecker's replacement was Egon Krenz
Egon Krenz
Egon Krenz is a former politician from East Germany , and that country's last Communist leader...

, the regime's number-two man for most of the second half of the 1980s. Although he was almost as detested as Honecker himself, he made promises to open up the regime from above. Few East Germans were convinced, and the demonstrations continued unabated. Additionally, people continued to flee to West Germany in increasing numbers, first through Hungary and later through Czechoslovakia. At one point, several schools had to close because there weren't enough students or teachers to have classes.

On 9 November, in an effort to stave off the protests and the mass exodus, the government crafted new travel regulations that allowed East Germans who wanted to go to West Germany (either permanently or for a visit) to do so directly through East Germany. However, no one on the Politburo told the government's de facto spokesman, East Berlin party leader Günter Schabowski
Günter Schabowski
Günter Schabowski is a former official of the Socialist Unity Party of Germany , the ruling party during most of the existence of the German Democratic Republic...

, that the new regulations were due to take effect the next day. When a reporter asked them this, Schabowski assumed they would take effect that day and replied, "As far as I know ... immediately, without delay." When excerpts from the press conference were broadcast on West German television, it prompted large crowds to gather at the checkpoints near the Berlin Wall. Unprepared, outnumbered and unwilling to use force to keep them back, the guards finally let them through. In the following days increasing numbers of East Germans took advantage of this to visit West Germany or West Berlin (where they were met by West German government gifts of DM100 each, called "greeting money").

The fall of the Berlin Wall was, for all intents and purposes, the death certificate for Communist rule in East Germany. On December 1, the Volkshammer deleted the provisions of the Constitution giving the SED a monopoly of power. Egon Krenz, the Politburo and the Central Committee resigned two days later.

Financial situation in 1990

Little of the structural economic and financial problems identified by the Schürer-Papier were widely known until late 1989 (although in 1988-89 the GDR's creditworthiness was declining slightly). At this time, the government, aware of the impending problems from the October 1989 Schürer-Papier, asked the West German government for new billion-Deutschmark loans. Although the financial problems probably played no role in the opening of the borders on 9 November, doing so eliminated any West German interest in supporting the East German state, as West Germany immediately began to work towards a reunification. As a result the new East German transitional government faced massive medium-term financial problems, which might—as the Schürer-Papier had even suggested—lead to the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

 being called in, although in the short-term gold and other reserves ensured that bills continued to be paid. In the event, massive West German financial support (around half East Germany's budget in 1990) following the March 1990 elections prevented a financial collapse in the months up to reunification.

Reunification

Although there were some small attempts to create a non-socialist East Germany, these were soon overwhelmed by calls for reunification with West Germany. There were two main legal routes for this. The Basic Law
Basic Law for the Federal Republic of Germany
The Basic Law for the Federal Republic of Germany is the constitution of Germany. It was formally approved on 8 May 1949, and, with the signature of the Allies of World War II on 12 May, came into effect on 23 May, as the constitution of those states of West Germany that were initially included...

 for the Federal Republic had been conceived as a temporary document because at the time (1949) it could not extend to eastern Germany due to the Soviet occupation zone there. The Basic Law therefore provided a means (Article 146) for a new constitution to be written for a united and democratic Germany. However it also contained Article 23, under which states could accede to the Federal Republic, in the process accepting its existing laws and institutions. This had been used in 1957 for the accession of the state of Saarland
Saarland
Saarland is one of the sixteen states of Germany. The capital is Saarbrücken. It has an area of 2570 km² and 1,045,000 inhabitants. In both area and population, it is the smallest state in Germany other than the city-states...

. Whilst Article 146 had been expressly designed for the purpose of German reunification, it was apparent in 1990 that employing it would require a vastly longer and more complex process of negotiation - and one which would open up many political issues in West Germany, where constitutional reform (particularly to respond to changing economic circumstances) was a longstanding concern. An accession under Article 23, on the other hand, could be (and ultimately was) implemented in just 6 months, and sidestepped completely the West German political conflicts involved in writing a new constitution. Under the pressure of an increasing financial crisis (driven partly by mass emigration to West Germany in early 1990, and partly by the Federal Republic's refusal to grant the loans that would have been needed to underpin a longer transition period), the Article 23 route rapidly became the frontrunner. The cost of this, however, was that East German democracy died almost as soon as it was born, with a set of laws and institutions imposed from outside replacing a set of laws and institutions imposed from above. Any debate, for example, about the value of the various social institutions (such as the childcare, education and healthcare systems, which had implemented policy ideas discussed in West Germany for decades, and still current today) was simply ruled out by this legal route.

Following the first free East German elections on 18 March 1990, the CDU-dominated Alliance for Germany
Alliance for Germany
The Alliance for Germany was an opposition coalition in East Germany. It was formed on 5 February 1990 in Berlin to stand in the East-German Volkskammer elections. It consisted of the Christian Democratic Union, Democratic Awakening and the German Social Union...

 formed a "grand coalition" with the GDR's Social Democrats, and elected Lothar de Maizière
Lothar de Maizière
Lothar de Maizière is a German christian democratic politician. In 1990, he served as the only democratically elected Prime Minister of the German Democratic Republic, and as such was the last leader of an independent East Germany....

 as Prime Minister on 12 April. Following negotiations between the two German states, a Treaty on Monetary, Economic and Social Union was signed on 18 May, and came into effect on 1 July, among things replacing the East German mark
East German mark
The East German mark commonly called the eastern mark , in East Germany only Mark, was the currency of the German Democratic Republic . Its ISO 4217 currency code was DDM...

 with the Deutsche Mark. The treaty already declared the intention for East Germany to accede to the Federal Republic via Article 23 of the latter's Basic Law
Basic Law for the Federal Republic of Germany
The Basic Law for the Federal Republic of Germany is the constitution of Germany. It was formally approved on 8 May 1949, and, with the signature of the Allies of World War II on 12 May, came into effect on 23 May, as the constitution of those states of West Germany that were initially included...

, and indeed laid much of the ground for this by providing for the swift and wholesale implementation of Federal laws and institutions in East Germany.

In mid July most state property - covering a large majority of the East German economy - was transferred to the Treuhand
Treuhand
The Treuhandanstalt was the agency that privatized the East German enterprises, Volkseigener Betrieb , owned as public property. Created by the Volkskammer on June 17, 1990, it oversaw the restructuring and selling of about 8,500 firms with initially over 4 million employees...

, which was given the responsibility of overseeing the transformation of East German state-owned business into market-oriented, privatised companies. On 22 July a law was passed recreating the five federal states
New federal states
The new federal states of Germany are the five re-established states in the former German Democratic Republic that acceded to the Federal Republic of Germany with its 10 states upon German reunification on 3 October 1990....

 existing before the creation of the German Democratic Republic, to take effect on 14 October; and on 31 August the Unification Treaty set an accession date of 3 October (modifying the State Creation Law to come into effect on that date). The Unification Treaty declared that (with few exceptions) at accession the laws of East Germany would be replaced overnight by those of West Germany.

In September, after some negotiations which involved the United States, the Soviet Union, France and the United Kingdom, conditions for German reunification were agreed on, with the Allies of World War II
Allies of World War II
The Allies of World War II were the countries that opposed the Axis powers during the Second World War . Former Axis states contributing to the Allied victory are not considered Allied states...

 renouncing their former rights in Germany, and agreeing to remove all occupying troops by 1994. With the 12 September signing of the Treaty on the Final Settlement with Respect to Germany
Treaty on the Final Settlement with Respect to Germany
The Treaty on the Final Settlement With Respect to Germany, was negotiated in 1990 between the Federal Republic of Germany and the German Democratic Republic , and the Four Powers which occupied Germany at the end of World War II in Europe: France, the Soviet Union, the United Kingdom, and the...

, Germany became fully sovereign once more from 15 March 1991. On October 3, 1990, the new federal states, created on that day, acceded to the Federal Republic, while East and West Berlin reunited to form the third city-state of the Federal Republic. Thus the East German population was the first from the Eastern Bloc to join the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 as a part of the reunified Federal Republic of Germany (see German reunification
German reunification
German reunification was the process in 1990 in which the German Democratic Republic joined the Federal Republic of Germany , and when Berlin reunited into a single city, as provided by its then Grundgesetz constitution Article 23. The start of this process is commonly referred by Germans as die...

).

See also

  • History of Germany
    History of Germany
    The concept of Germany as a distinct region in central Europe can be traced to Roman commander Julius Caesar, who referred to the unconquered area east of the Rhine as Germania, thus distinguishing it from Gaul , which he had conquered. The victory of the Germanic tribes in the Battle of the...

  • Leaders of East Germany
    Leaders of East Germany
    The political leadership of East Germany was in the hands of several offices.Prior the proclamation of an East German state, the Soviets established in 1948 the German Economic Commission as a de facto government in their occupation zone...


External links

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