German Reunification

Setting the scene

Germany was reunified on October 3, 1990, when East Germany (German Democratic Republic) joined West Germany (Federal Republic of Germany), ending 45 years of division. Reunification followed the fall of the Berlin Wall in November 1989 and free elections in East Germany in March 1990, which pro-reunification parties won. The process was negotiated in the 'Two Plus Four' talks between the two Germanys and the four Allied powers.

What happened

The Unification Treaty was signed August 31, 1990. East Germany's five states acceded to the Federal Republic under Article 23 of the West German Basic Law. The process involved economic union on July 1, 1990, when West German marks replaced East German currency at a politically motivated 1:1 rate for wages and savings, which later caused economic problems. The Soviet Union, in exchange for financial aid, agreed to withdraw 380,000 troops.

Why it still matters

Reunification created a Germany of 80 million people, the dominant power in Europe. It cost over €2 trillion in transfers to rebuild the East, and economic and cultural divisions persist. October 3 is now German Unity Day. Reunification demonstrated that Cold War divisions could be peacefully overcome and that national self-determination could triumph. It fundamentally altered European geopolitics, creating a unified Germany at the heart of a integrating Europe.

Background

NATO borders moved eastward.