BISMARCK’S ERA DOMESTIC SITUATION 1. PARLIAMENT AND POLICIAL PARTIES IN THE REICH Shape of the German Reich as a voluntary association of German States o Prussia 60% of land and population More powerful o Bavaria o Wurttemberg o Saxony o 18 lesser states o 3 free cities o Imperial territory (Reichland) of Alsace-Lorraine Only one not autonomous in domestic administration Reichstag, imperial assembly o Elected by universal manhood suffrage o Subjected to limitations o Power to question the Chancellor (Bismark) In truth it didn’t hold any real power Bundesrat, upper house of the Reichstag o Power to initiate legislation o Authority to declare war and settle disputes (with assent of the Emperor) o Represented the individual interests of the states o Majority of the seats to Prussia Wilhelm, Emperor o Full control over ministers o Foreign affairs o Right to the final say in any dispute Political parties o Conservatives Mostly Prussians, Protestant, aristocratic landowners Hostile with Bismarck’s opening to liberalism and nationalism o Reichspartei Landowners and industrials Supporting Bismarck o Centre Party Roman Catholic minority Defense of the interests of the Catholic Church o Liberals Bismarck supporters 1871-1878 – liberal area Dominant party – needed by Bismarck for support Economic progress through administrative and financial consolidation Gold standard Customs abolished National currency o The Left Modest force General Workers’ Association 2. DOMESTIC ISSUES Problem of minorities o Alsace-Lorraine (French) o Poland o Schleswig (Danes) Suppression Problems not solved till WWI Kulturkampf and Catholic Church o The Catholic Church represented danger for the authority of the German State o May Laws Cutting of the relationships with the Vatican Expulsion of the Jesuits from German soil Church school brought under state control Most religious orders dissolved Civil marriage compulsory Excommunication invalid o Loss of support Liberals distrust this policy Centrum is essentially Catholic o New Pope Leo XIII more conciliatory End of the Kulturkampf Kulturkampf is sacrificed to other “more important issues” Parties become more religious 3. ECONOMY The economic impact of unification: Growth and development o Iron ore in Alsace-Lorraine o French indemnity payments from 1871 to 1873 o Building and railway industry development o Burst of legislation designed to unify further the economic life of the Reich o Coal and steel production soared o German merchant marine became the second largest in the world o Stimulus to Germany banking industry Finance capitalism Subventions to the military campaigns o Growth of cartels Demand of protective tariffs Campaigns for naval and colonial development Safe home markets enabled to dump goods cheaply on foreign markets Increasing demands and ambitions of German financiers and industrialists Future cause of problems Depression and economic recession o End of liberalism as main economic policy o Protectionism and conservatism High import duties placed upon foreign goods More economic independence Defense against cheap grain imported from the US End of the liberal era FOREIGN POLICIES 1. FRANCE AND GREAT BRITAIN With France Treaty of Frankfurt, 10th May 1871 Outcome of the Franco-Prussian war o Indemnity of 5 billion francs o Alsace-Lorraine to the Germans Revanchist movements in France Tensions between France and Germany accumulates Encourages France imperialism o Let it fight with the UK and Italy in Africa and Asia o Weakens its power With Great Britain Bismarck pursued co-operation o Few potential sources of conflict o Genuine cooperation between world’s biggest army and navy o Great Britain needs a strong Germany to balance power of France o Germany to not build a big navy 2. AUSTRIA-HUNGARY AND RUSSIA Bismarck is the “Honest Broker” o Keeps peace in Europe through various treaties with Russia and Austria Dreikaiserbund o Alliance with Russia and the Austrian Empire Unity of conservative powers Neither Russia nor Austria are free to ally with France Prevented conflicts between Austria and Germany over the crumbling Ottoman Empire o Weak alliance When war seems in sight between France and Germany, Russia backs France up Bulgaria, Romania, Serbia and Montenegro rebel to the Ottoman Empire and become client states to Russia Prospect of a clash between Russian and Austria over Conference of Berlin, led by Bismarck, assured peace Highpoint in Bismarck’s diplomatic career Preserved peace and confirmed Berlin as the center of European diplomacy Russia lost the territory Occupation of Bosnia-Herzegovina by Austria without people’s consent Dual alliance o Germany reinforces its alliance with Austria and then Italy, which binds them to: Defense of the other country if Russians attack Neutrality if any other power attacks Russia renews the Dreikaiserbund o Fears to remain isolated Secret Reinsurance Treaty with Russia o Neutrality if a third power attacks o Germany is safe and can decide to back up either Austria or Russia in case of war 3. IMPERIALISM Imperialist policies from 1884 to 1889 o Bismark now seeks Germany’s place in the international picture through colonialism o Togoland, Cameroons and (current Namibia) South-West Africa, (current Tanzania) East Africa, New Guinea, Samoan Island o Maybe Bismarck had always been waiting for imperial greatness o Bismarck had to conform to dominating trends in German society, and economic interest o He might have been influenced by the arguments or conservatives, who saw foreign adventures as a distraction from domestic tensions o The policy was generally sterile Bismarck wanted to relegate colonization to private enterprises Only wanted to protect commercial establishments It turned out to be an immense cost for taxpayers Only Togoland and Samoa had proved to be self-supporting Imperialism was a disappointment Only South-West Africa, with its diamonds, fulfilled Bismarck’s hopes The native populations were unable to play the role of consumers Basis for German pretensions to a world policy in the next decade – causes of WWI