German Empire: Economic Growth, Political Structure, and Bismarck's Chancellorship

The German Reich (1871-1914)

In 1871, the German Empire was proclaimed in the Hall of Mirrors at the Palace of Versailles, establishing Germany as a new great power in Europe.

Economic Expansion and Political Organization (1869-1875)

By 1869, internal barriers between German economic regions were eliminated, creating a unified internal market through the abolition of fees and the standardization of weights and measures. In 1871, the framework for a unique Imperial Bank was established, and by 1875, it was fully operational. The state's railway nationalization policy significantly aided economic growth, particularly in heavy industry and transport, fueled by industrial and financial concentration.

The political system granted extensive powers to the emperor. Political parties were divided into:

• Liberals: Divided between nationalists and leftists.
• Conservatives: Held significant influence in Prussia.
• SPD (Social Democrats): Founded in 1875 with Marxist ideology.
• Zentrum: The centrist Catholic party, advocating for a Greater Germany and defending the Church's interests.

Bismarck's Chancellorship (1871-1890)

As Chancellor from 1871 to 1890, Bismarck's primary policy objective was to ensure the empire's security through preventive strategies, both domestically and internationally.

He initiated the Kulturkampf (culture struggle) against the Catholic Church, aiming for state control over education and the clergy. However, this policy proved unsuccessful and was abandoned in 1879, leading to an improved relationship with Catholics.

Bismarck also opposed the Social Democrats but introduced pioneering social insurance laws for old age and accidents, which were world-first initiatives. His resignation was prompted by his opposition to Kaiser Wilhelm II's colonial policies.

The Germany of Wilhelm II (1890-1914)

Wilhelm II showed a strong interest in Germany's colonial expansion, making naval policy and armament the central focus of his actions. Chancellor von Bülow promoted the Navy League and the Imperial League, which aroused suspicion among European neighbors and fueled an unbridled arms race.

The Formation of Two Blocks (1893-1914)

This period began with the ascension of King Wilhelm II, who desired a colonial empire while maintaining European hegemony. He attempted to weaken the Franco-Russian alliance and developed a Weltpolitik (world policy) for colonial expansion. This strategy worsened relations between European powers, promoted popular nationalism, and intensified the arms race. European nations became divided into two opposing blocs:

• The Triple Alliance: Initially comprising Germany, Italy, and Austria-Hungary. (Italy later defected).
• The Entente Cordiale: Formed by France and England, later joined by Russia.