20.1 Process of German reunification

The fall of the Berlin Wall in 1989 sparked a peaceful revolution in East Germany. This led to free elections, negotiations with Allied powers, and the signing of the Unification Treaty. These events set the stage for German reunification.

On October 3, 1990, East and West Germany officially reunited. This historic moment brought challenges in merging two different systems. Economic integration, including currency union, was a key focus in the reunification process.

Fall of the Berlin Wall and Peaceful Revolution

Berlin Wall's Collapse and Its Immediate Impact

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• Berlin Wall fell on November 9, 1989, marking the end of East German border controls
• Thousands of East Germans crossed and climbed onto the wall, joined by West Germans on the other side
• Dismantling of the wall began officially in June 1990 and was completed in 1992
• Fall of the wall symbolized the end of the Cold War and the Iron Curtain in Europe

The Peaceful Revolution and Political Transformation

• Peaceful Revolution in East Germany began with protests in Leipzig in September 1989
• Demonstrations spread to other East German cities (Dresden, Berlin) throughout October
• Protesters demanded democratic reforms, freedom of speech, and free elections
• East German leader Erich Honecker resigned on October 18, 1989, replaced by Egon Krenz
• New government announced plans for free elections and easing of travel restrictions

Volkskammer's Role in Transition

• Volkskammer served as the East German parliament during the transition period
• Held first free elections on March 18, 1990, with high voter turnout (93.4%)
• Christian Democratic Union (CDU) won the majority, forming a grand coalition government
• Lothar de Maizière became the first democratically elected Prime Minister of East Germany
• Volkskammer played a crucial role in negotiating and approving the Unification Treaty

Unification Process

Two Plus Four Agreement Negotiations

• Two Plus Four Agreement involved the two German states and the four Allied powers (US, UK, France, Soviet Union)
• Negotiations began in May 1990 and concluded in September 1990
• Addressed international aspects of German reunification, including NATO membership
• Resolved issues related to Poland's western border with Germany
• Provided for the withdrawal of Soviet troops from East German territory by 1994

Unification Treaty Development and Implementation

• Unification Treaty (Einigungsvertrag) signed on August 31, 1990
• Outlined the legal framework for merging East and West Germany
• Addressed issues such as property rights, social welfare systems, and legal harmonization
• Established Berlin as the capital of unified Germany
• Created provisions for integrating East German institutions into the West German system

October 3, 1990: Day of German Unity

• October 3, 1990 marked the official date of German reunification
• East German states (Brandenburg, Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt, Thuringia) joined the Federal Republic of Germany
• East Berlin merged with West Berlin to form a single city-state
• Celebrations held throughout Germany, with main ceremony in front of the Reichstag in Berlin
• First all-German elections held on December 2, 1990, confirming Helmut Kohl as Chancellor

Economic Integration

Currency Union and Economic Reforms

• Currency union between East and West Germany implemented on July 1, 1990
• East German Mark exchanged for Deutsche Mark at varying rates (1:1 for wages, pensions, and small savings; 2:1 for larger amounts)
• Treuhandanstalt established to privatize East German state-owned enterprises
• Rapid privatization led to closure of many inefficient East German businesses
• Massive investment in East German infrastructure and industry to modernize the region

Deutsche Mark as Symbol of Economic Unity

• Deutsche Mark became the sole currency of unified Germany
• Represented economic stability and strength of West German economy
• Facilitated price comparisons and trade between former East and West
• Adoption of the Deutsche Mark in East Germany led to initial price shocks and inflation
• Served as Germany's currency until the introduction of the Euro in 2002

Helmut Kohl's Leadership in Reunification

• Helmut Kohl, Chancellor of West Germany, played a crucial role in the reunification process
• Proposed and implemented the "10-point plan" for German unity in November 1989
• Negotiated with Soviet leader Mikhail Gorbachev to gain Soviet approval for reunification
• Advocated for rapid economic integration through currency union
• Faced criticism for underestimating the costs and challenges of reunification
• Won the first all-German elections in December 1990, becoming Chancellor of unified Germany