Basic Facts about Germany

Foundations for Present Day Germany

Understanding present day Germany and the way its people do business becomes easier against the backdrop of its most recent national history. A few dates provide helpful signposts for developments in the country's history that still resound today.

In 1871, the first centralized German government, the German Empire, was established. The country was led by the Prussian house of Hohenzollern from its capital in Berlin but it was composed of both Prussia and the many smaller German states. The challenge of uniting the many small German states in one nation is evident today in Germany's strong regionalism. Many Germans feel a particularly strong pride in their hometowns and local customs. This is observed most noticeably in  the wide variety of regional specialties (i.e. sausages), beverages (beer, wine, spirits) and dialects as well as the particular zest for local celebrations and traditional attire, dances and music presented at such events.

The German Empire was succeeded by the Weimar Republic after a fierce World War I in Europe (1914-1918) and the monarchy's subsequent abdication. In 1919, the German president, Friedrich Ebert signed the Weimar Constitution establishing a democratic government in postwar Germany. Unfortunately, the country was wracked by several periods of very high inflation and unemployment, providing a perfect breeding ground for the extremist political groups of the national socialist party. In 1933, Adolf Hitler was appointed chancellor and his Nazi party subsequently took over leadership in Germany. The German ''Third Reich'' was a dictatorship during which the country experienced one of its darkest times in history where millions of people lost their lives in concentration camps and the Second World War.

From 1945 to 1949, postwar Germany was occupied by Britain, France, the United States and the USSR. During the Cold War (1949-1989), Germany was then divided into the German Democratic Republic (GDR) and the Federal Republic of Germany (FRG). The GDR founded a socialist state under the supervision of the USSR, while the FRG established a federalist democratic system under the auspices of the other three allied powers. Germany was long both the ideological and practical battleground of the Cold War. As such, the global peace and environmental movements born during this period were particularly active in the region. The importance of these issues has remained strong in Germany throughout the years, as evidenced by the non-governmental organizations (NGOs) active in the country and the success of products addressing such issues (fair trade, organic, etc.).

Since its reunification in 1990, Germany has worked especially hard to promote economic and political cooperation, peace and stability in both the European Union and around the world. The original guiding principles set up in Germany' ''Basic Law'' (or constitution) at the founding of the FRG in 1949 have remained in place to this day. After having experienced the major upheaval of the last century, Germans have, on the whole, come to value stability, (social) security, safety and durability. As a result, consumers tend to favor products which fulfill these needs.