The Rise of Imperial Germany: Bismarck to Wilhelm II (1871–1914)

The Second German Reich: Unification and Imperial Power (1871–1914)

In 1871, the Second German Reich was created. German unification centered around Prussia and the Prussian victory over France, leading to the proclamation of Wilhelm I as German Emperor. The foundation of the Second Reich marked the emergence of a major power in Europe.

Economic Expansion and Political Structure

The Customs Union of 1834 and rapid industrial development contributed significantly to Germany's political unification and formed the basis of the country's economic strength. Monetary unification occurred, establishing the framework and the Imperial Bank. Railway policy was fundamental. The growing economy facilitated the annexation of Alsace-Lorraine and accelerated the process of financial and corporate concentration. Germany became the largest industrial power in Europe by the end of the nineteenth century.

The political system granted wide powers to the Emperor. German political parties were based on four major groups:

• Liberal Parties: Divided into National Liberals and Left-Liberals.
• Conservatives: Held significant influence within the Prussian bureaucracy and extended their model across Germany.
• Social Democrats: Adhered to Marxist ideology.
• Zentrum (Centre Party): A centrist Catholic party.

Otto von Bismarck: Chancellor of the Reich (1871–1890)

Bismarck served as Chancellor of the Reich from 1871 until his resignation in 1890. The core of his policy was ensuring the security of the empire, reflected in a preventive strategy against internal dissent and external threats, particularly French revenge.

Internal Conflicts and Social Legislation

His first major internal conflict, the Kulturkampf (Culture Struggle), pitted him against the Catholic Church. Bismarck introduced measures promoting church-state separation, public education, and state control over the clergy. Between 1878 and 1879, Bismarck gradually shifted his political focus, and the anticlerical laws were largely abolished by 1887.

Another major point of action was directed against the Social Democrats, whom he considered the 'germ of revolution.' Despite this opposition, the Chancellor adopted pioneering social laws (three types of insurance: illness, old age, and labor accidents).

In the 1880s, Bismarck faced difficulties due to his reluctance to support colonial politics, which influential bankers and merchants defended. Wilhelm I died in 1888 and was succeeded by Wilhelm II. Bismarck resigned in 1890.

Wilhelm II and the New Course (1890–1914)

Following Bismarck's departure, German policy underwent significant changes (the 'New Course'). In foreign policy, Wilhelm II showed strong interest in imperialist expansion and the development of the navy and the army. Domestically, his aim was to consolidate power at the expense of the Chancellor.

Bismarck's successors barely improved social legislation. Instead, naval policy and armament became the central axis of government action. Chancellor Bülow further encouraged this line, and numerous organizations emerged to support these expansionist policies.

German militarism and warmongering aroused increasing suspicion among other European countries, especially France and Britain, who feared that German expansionism would jeopardize their respective colonial empires.