After the Congress of Vienna, German history was marked by movements towards national
unification revolving around three main directions: the Kingdom of Prussia, the Habsburg
Empire, and the German Confederation. During the first half of the 19th century, the states of
the Confederation focused on strengthening their economies, following the teachings of
economist Friedrich List, a theorist of economic nationalism.
This internal economy without internal customs barriers allowed for industrial development
among the 37 states of the German Confederation. The protectionist economic policy also
ensured that foreign goods were less advantageous than domestically produced goods
within the Confederation.
Politically, efforts to achieve the dream of unification saw two particularly intense moments:
the revolutions of 1848, which aimed towards the establishment of a "Small German"
national state, and in 1850 when King Frederick William IV of Prussia sought unification by
negotiating with some Confederation states. However, this project alarmed both Russia and
Austria, who reminded the Prussian King through the Olmütz Declaration of the agreements
of 1815 from the Congress of Vienna, which stipulated that Prussia would not interfere with
the decisions and autonomy of the Confederation, as well as remain loyal to it.
Nevertheless, his successor, William I, brought Otto Von Bismarck to power in 1861, a Prime
Minister who propelled Prussia onto the European political stage. Bismarck's project
envisioned a strong militarization of Prussia and industrialization aimed at quickly mobilizing
the army and resources. To implement this, Bismarck dissolved the Parliament and ruled
without its approval on budget matters. According to Bismarck, in case of disagreement
between the Crown and Parliament, the Crown should have the final say. Without a
Chamber to approve the economic decisions desired by the Crown, Bismarck prepared
Prussia for war to unify Germany under Prussian leadership.
Bismarck's project, carried out between 1864 and 1871, involved three military campaigns:
against Denmark (obtaining Schleswig and Holstein), Austria (preventing it from challenging
the Congress of Vienna agreements), and France (obtaining Alsace and Lorraine, and
economically weakening a major Central European power).
The war against Austria was meticulously prepared to prevent outside intervention: Bismarck
formed an alliance with Italy, which sought Veneto, and secured the neutrality of Russia and
France. Bismarck's industrialized war machine defeated the Austrians in just three weeks,
concluding in June 1866. Unlike Italy, which gained Veneto, Prussia acquired control of the
northern states of the Confederation, renamed the "North German Confederation" in 1867.
The southern states, predominantly Catholic, remained loyal to Austria due to closer cultural
ties.
France was defeated at Sedan in 1870, leading to the fall of Napoleon III's Empire. William I
was crowned Kaiser of the new German Empire at Versailles. Bismarck's triumph was so
significant that it persuaded the southern states to join Bismarck's Germany under William I.