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Main articles: History of East Germany, History of Germany
At the end of World War II, at the Potsdam Conference in 1945, the victorious countries France, the United Kingdom, the United States and the Soviet Union decided to divide Germany into four parts. Each country controlled a part of former Germany.
The territories of East Germany were initially settled by Slavic Wends and conquered by Germany in Middle Ages. The newly acquired land was organised in Markts, German feudal states on the land of Slavs. Consequent waves of German settlements, later also Jewish and French Hugenots, gradually advert ethnic composition of land, except the small community of Sorbs in Lusatia. Most of East Germany became later part of Kingdom of Prussia.
In Imperial Germany and Weimar Republic territory that would become East Germany was situated in the center of the state. This territory was known as "Mitteldeutschland" (Middle Germany), while "East" was reserved for provinces such as eastern Pomerania, eastern Brandenburg, Silesia and East and West Prussia. During WWII, Allied leaders decided at the Yalta Conference that post-war borders of Poland would be moved westward to the Oder-Neisse line, just as Soviet borders were also moved westward into formerly Polish territory.
Discussions at Yalta and Potsdam also outlined the planned occupation and administration of post-war Germany under a four-power Allied Control Council, or ACC (composed of the United States, United Kingdom, France, and the Soviet Union). The Länder (states) of Mecklenburg, Brandenburg, Saxony, Saxony-Anhalt, Thuringia, and the eastern sector of Greater Berlin fell in the Soviet Sector of Germany, or SBZ. Soviet objections to economic and political reforms in western (US, UK, and French) occupation zones led to Soviet withdrawal from the ACC in 1948 and subsequent evolution of the SBZ into the GDR. Concurrently, the western occupation zones consolidated to form the Federal Republic of Germany (FRG, or West Germany).
East Germany adopted a socialist republic and became part of the Warsaw Pact, while West Germany became a liberal parliamentary republic and part of NATO.
The first leader of the GDR was Walter Ulbricht. The East German Constitution defined the country as "a Republic of Workers and Peasants."
On June 17, 1953, following a production quota increase of 10%, German workers demonstrated in East Berlin and other industrial centers. Later that day, Soviet troops and tanks suppressed the demonstrations. [1] See Straße des 17. Juni and Workers' Uprising of 1953 in East Germany
Just as Germany was divided after the war, Berlin, the former capital, of Germany was divided into four sectors. Since Berlin was entirely enclosed in the Soviet part of Germany, the areas of Berlin being held under the control of the three western countries soon became known as West Berlin. Conflict over the status of West Berlin led to the Berlin Airlift. The increasing prosperity of West Germany, which could offer higher salaries to white collar workers, led large numbers of white collar East Germans to migrate to the West.
Competition with the West was carried also on the sport level. East German athletes were sure winners in several Olympic disciplines. Of special interest was the only football match ever between West and East Germany, a first round match during the 1974 World Cup. Though West Germany was the host and the eventual champion, East beat West 1-0.
Increase friction with NATO led to the DDR ordering the borders to be closed ( DDR border system) which included the Berlin Wall, in 1961. When East Germany closed the western borders, it also literally enclosed West Berlin within a huge wall, the Berlin Wall. Travel was greatly restricted into, and out of, East Germany. In 1971, Erich Honecker overthrew Ulbricht in a technical coup. East Germany was generally regarded as the most economically advanced of the Warsaw Pact.
Before the 1970s, the official position of West Germany was that of the Hallstein Doctrine which involved non-recognition of East Germany. In the early 1970s, Ostpolitik led by Willy Brandt led to mutual recognition between East and West Germany.
In August 1989 Hungary removed its border restrictions and many people fled East Germany by crossing the "green" border into Hungary and then on to Austria and West Germany. Many others peacefully demonstrated against the ruling party. These demonstrations eventually forced the resignation of Honecker; in October he was replaced, albeit briefly, by Egon Krenz.
On November 9th, 1989 the Berlin Wall fell and on 22 December the Brandenburg Gate re-opened and with it the whole socialist system of East Germany fell away. Although there were some small attempts to create a non-socialist East Germany, these were soon overwhelmed by calls for reunification with West Germany. After some negotiations (2+4 Talks, involving the two Germanies and the victory powers United States, France, Britain, and the Soviet Union), conditions for German reunification were agreed on. Thus, on October 3rd 1990 the East German population was the first from the Eastern Bloc to join the European Union as a part of the reunified Federal Republic of Germany. The East German territory was divided into what is now the city of Berlin and five states.
To this day, there remain many differences between the formerly "eastern" and "western" parts of Germany (e.g. in lifestyle, wealth, political beliefs and such) and thus it is still common to speak of eastern and western Germany distinctly; one would hesitate however to contend it is greater than say that between a southern Bavarian and a Hamburg resident. In this new Germany the economic chasm is greater than in the former West Germany, and much greater than in the former East Germany. Unemployment and long term poverty have led sometimes to an uncomfortable recurrence of nationalist and neofascist sentiments.
The costs of German reunification have greatly slowed the German economy. The costs amounts to over 1,5 trillion Euro (1900 billion $) till today.