The Early Federal Republic: Adenauer, Economic Miracle, Ostpolitik

Konrad Adenauer: the first Federal Chancellor

The Basic Law (Grundgesetz) was promulgated on 23 May 1949. The Parliamentary Council (Parlamentarischer Rat) had drafted it. With that, the Federal Republic of Germany was founded. On 15 September 1949, the first Federal Parliament (Bundestag) elected Konrad Adenauer as the first Federal Chancellor. He remained in office until 1963. The Federal Chancellor heads the Federal Government (Bundesregierung). Adenauer relied on close ties with the Western states, a policy known as integration with the West. He also sought reconciliation with France.

Adenauer strongly shaped the early years of the state. He was followed as Federal Chancellor, among others, by Ludwig Erhard and Willy Brandt.

The social market economy

The economic system in Germany is called the social market economy. It combines free competition and private property with social balance. Prices depend on supply and demand. The state sets rules and ensures social security. Competition is meant to keep prices low and quality high.

A planned economy, by contrast, is a system in which the state plans and controls the economy. The social market economy is therefore neither a planned economy nor a completely unregulated market. The social elements include social insurance, for example for illness and pensions. The name most associated with it is Ludwig Erhard, who was Minister of Economics at the time. He later became Federal Chancellor himself, from 1963 to 1966.

The economic miracle

The term economic miracle refers to the rapid upswing of the young Federal Republic. It took place mainly in the 1950s. It is closely linked to the currency reform and to reconstruction after the war. The Deutsche Mark was introduced in the western zones in June 1948. Before that, many people had hardly been able to buy goods. With the new currency, production and incomes grew quickly. Many families could now afford household appliances, cars and holidays. Unemployment fell markedly in this period. In just a few years, the Federal Republic thus became an economically strong country.

Willy Brandt and Ostpolitik

Willy Brandt became Federal Chancellor in 1969, heading a Social-Liberal Federal Government. He received the Nobel Peace Prize in 1971 for his policy. Before that he had been Governing Mayor of Berlin (Regierender Bürgermeister). His new Ostpolitik was meant to improve relations with the eastern neighbours.

On 7 December 1970, Brandt knelt down at the memorial to the Warsaw Ghetto. With this gesture he asked Poland and Polish Jews for forgiveness. The Warsaw Genuflection is still regarded as one of the best-known signs of German reconciliation policy. The gesture attracted great attention in Germany and abroad.

Between 1970 and 1973, the so-called Eastern Treaties were concluded. They included treaties with Moscow, Warsaw and Prague as well as with the German Democratic Republic (GDR; in German DDR). They were meant to reduce tensions. Ostpolitik was controversial in Germany. Its supporters saw it as a path to greater understanding. Its critics rejected some of the concessions. The Federal Parliament had to approve the treaties. That happened after bitter dispute.

SourcesDeutscher Bundestag: Adenauer zum ersten Bundeskanzler gewählt↗Bundesministerium für Wirtschaft: Wirtschaftswunder und Soziale Marktwirtschaft↗Bundesregierung: Rede zum Jahrestag des Kniefalls von Warschau↗Bundeszentrale für politische Bildung: Der Weg zur Einheit↗