Internal developments in the West 1961-1989

Question 1

Key date: Erhard becomes chancellor

Answer 1

October 1963

Question 2

Key date: Kiesenger forms the grant coalition

Answer 2

December 1966

Question 3

Key date: Rudi Dutschke is shot

Answer 3

April 1968

Question 4

Key date: Emergency law is passed by the Bundestag

Answer 4

May 1968

Question 5

Key date: Brandt becomes Chancellor

Answer 5

October 1969

Question 6

Key date: Brandt is re elected

Answer 6

November 1972

Question 7

Key date: Rise in oil prices

Answer 7

November 1973

Question 8

Key date: Brandt resigns, Schmidt becomes chancellor

Answer 8

May 1974

Question 9

Key date: SPD/FDP coalition under Schmidt just manages to retain power

Answer 9

October 1976

Question 10

Key date: Mogadishu incident

Answer 10

October 1977

Question 11

Key date: Green party formed

Answer 11

1980

Question 12

Key date: Kohl replaces Schmidt as chancellor

Answer 12

October 1982

Question 13

Key date: FDP/CDU/CSU coalition under Kohl retains power with reduced majority

Answer 13

January 1987

Question 14

Economic downturn change 1964-5

Answer 14

1964 - prosperity:

• Production ^ 8%
• Wages up 8.5%
• No unemployment, 850 000 unfulfilled jobs
• September 1965: CDU/CSU 47.6% of vote
• Erhard new programme: building cooperating within social market economy

1965 - downturn:

• recession in 1965
• High inflation 4% in 1966 with wages increasing more than production
• Caused by excessive public spending (on public not by) on modernising railways and military purchases from US. -Green plan which subsidised agriculture was costly

Results:

• cut spending plans by 10%
• suggested extra 1 hr weekly, rejected by unions
• Raised interest to reduce prices, worsened recession
• NPD (neo nazi) enjoyed success in local elections

Question 15

Factors contributing to Erhard’s resignation in November 1966

Answer 15

• Downturn of 1965, poor policy making, excessive public spending
• July 1966 elections: CDU/CSU lost out
• Inter coalition disputes over how to deal with downturn
• Erhard failed to persuade America to accept cuts to FRG contribution to posting American troops in West Germany
• FDP resigned from coalition

—> Erhard resigns November 1966, replaced by CDU/CSU leader Kiesinger

Question 16

The Grand Coalition of 1966-9

Answer 16

• Temporary SDP/CDU/CSU coalition to combat worsening conditions of the state
• SDP had chance to show ability, CDU/CSU escaped FDP demands

Question 17

What were the criticisms of the Grand Coalition of 1966-9

Answer 17

• Strong majority, tantamount to 1 party state
• Kiesinger ex nazi
• Amendment to constitution, power for elected committee to rule by decree. Opposition from left, accused of becoming second Article 48
• Increased support for NPD, 48 seats in lander parliaments in 1967, better in 1968

Question 18

Grand coalition, political developments (action towards KPD)

Answer 18

• Allowed KPD to form in 1968
• Had continued as an underground movement
• legitimate party>underground network

Question 19

Economic policies of the Grand Coalition

Answer 19

• June 1967: Law for the promoting stability and growth in the economy - more federal control of economic matters
• Basic law changed, more centralised control of lander economic policy
• Increased cooperation between state/central gvt, essential for growth
• ‘Concerted action’ worker/employer/state cooperation with regard to planning economic policy
• Public spending cut, taxation rose, VAT 10%-12%

Question 20

How successfully did the Grand Coalition’s tackle the economic downturn of 1965?

Answer 20

Effective:

• Budget balanced in 1967
• Unemployment down, growth increases to 6% by 1968
• 1969, inflation falls to 1.5%

Not so successful:

• SPD felt CDU/CSU were holding back welfare reform
• Disagreement over foreign policy, SPD favored detente

Question 21

Presidential and Central elections of 1969

Answer 21

Presidential:
SPD candidate, Gustav Heinemann, defeats CDU/CSU’s Schroder

Central:
SDP/FDP majority (49.5) over CDU/CSU (46.1%)
–> SPD Willi Brandt elected as Federal Chancellor

Question 22

Causes of the Student protests of 1968

Answer 22

• First Generation of post-Hitler era, blamed parents’ generation for nazism
• Sparked with trials of Auschwitz guards in 1963-5, ex nazis (kiesinger) in power, outdated overcrowded universities and Grand Coalition policies (strong coalition, amendment to constitution to allow rule by decree)
• External influence of Vietnam War, reflected badly on their American benefactors

Martyrs:

• Benno Ohnesorg, June 1967
• Rudi Dutschke, shot by opponent in April 1968

Question 23

Events of the student protests of 1968

Answer 23

-Death of Benno Ohnesorg June 1967 –> Formation of
the 2nd June movement to avenge his death
-Death of Rudi Dutschke April 1968 –> Round of demonstrations instigated by Socialist Students’ League
-Protests against Grand Coalition, Vietnam, Atom bomb
-Accused of brutality when acting, but when passive government accused of Weakness

Question 24

Social development under Brandt: Welfare

Answer 24

• Pensions raised by 5%, war wounded/widows by 16/25%
• Sickness benefits ^ 9.5%, pensioners not required to contribute 2% to health insurance
• Tax free allowances for kids, fund for handicapped kids
• 1972 Pensions Act: Pensions less dependent on financial contributions. Health/Accident Insurance improved, Family/Unemployment allowances raised
• Town Planning Act, improved eco friendly measures

Question 25

Social development under Brandt: Education

Answer 25

• 1970-74, expenditure on education/research ^ 300%
• More places in schools, leaving age raised to 16
• More money allocated to school buildings
• More scholarships for graduates in 1970/1973
• 1971 Educational Support Law, grants to educate the poor
• Some lander introduced comprehensive schools

Question 26

Social development under Brandt: Employment

Answer 26

• Allowances for training/GDR refugees increased
• Job creation schemes
• Social housing budget ^ 36%, Railway budget ^14%
• New motorways created
• Increased grants for sport (to match GDR success)
• Factory Management law 1972, workers have more say
• Increased power for workers’ councils, effective 1979

Question 27

Social development under Brandt: Liberalisation

Answer 27

• Voting age lowered to 18 years old
• Equality of sexes increased, abortion became easier
• Censorship/laws against homosexuality
• Criminal law reformed, more lenient

Question 28

What problems did Brandt face in his chancellorship? - Inflation

Answer 28

• Currency speculators convert US>DM –> Banks give more loans=more money in circulation –> this meant higher prices=workers want higher pay –> this + welfare reform = inflationary situation
• Wages ^ 145%, cost of living up 4%
• Anti inflationary cuts

Question 29

What problems did Brandt face in his chancellorship? - terrorism

Answer 29

• Terrorism 1970-72
• Stringent measure used to combat it caused opposition from younger members of party
• Later awarded nobel peace prize

Question 30

What problems did Brandt face in his chancellorship? - Opposition to Ostpoltik

Answer 30

• Controversy over the policy
• Barely survived vote of no confidence in 1972
• However policies allowed some reconciliation and reunification of families across West/East
• –> SPD 42.7 to 45.8% of vote in November 1972, re-elected as chancellor

Question 31

Factors contributing to the resignation of Willi Brandt

Answer 31

• Hospital stay, appointments made in his absence which weakened hold on coalition
• Rising inflation worsened by 1973 oil crisis
• Unemployment grew, unions demanded wage increase, strike in January 1974
• Gunter Guillaume: Close adviser found to be East German spy

—> Resignation in May 1974, succeeded by Helmut Schmidt

Question 32

Student revolt and urban terrorism in the 1970s

Answer 32

• Baader-Meinhof Gang: arson, intimidation and kidnapping and assassination
• Brandt tightens relations 1972, 150 000 police employed to track them down
• Palestine Liberation Organisation (PLO): Hijacking in Munich in 1970, killed 11 athletes at Munich games in 1972> Later hijacked German plane to negotiate murderers’ releases, Palestinian hijack of German plane thwarted in 1977 in Mogadishu incident
• Red Army Faction (RAF): bombings and killings, but weakened after fall of Berlin/collapse of Communism

Question 33

What economic problems did the FRG face?

Answer 33

• 1971, Dollar fixed exchange rate abandoned, risks further inflation in Germany
• Increased cost of imports: 1971-3 cost of non oil commodities rose 70%, food by 100%
• Oil crisis of 1973: Organisation of Petroleum Exporting Countries (OPEC) doubled price of crude oil.
• –> FRG must pay 17 billion DM more for imports
• –> 400 000 unemployed
• –> $692 million dollar deficit
• Trade unions continued to demand wage rises

Later… December 1979 further 150% price rise

Question 34

How did Schmidt react to the economic problems of the FRG, and how successful were his strategies for overcoming them?

Answer 34

• Created more jobs, stimulated investment, tax reductions and increased benefits for child rearers/workers
• –> 1974: Kept inflation at 6%, growth at 4% HOWEVER 1975, 1 million unemployed and GDP at 1.6%
• Worked inside EEC to control inflation
• 1978: European Monetary System (EMS) proposed fixed exchange rates in Europe with DM as reference currency

Question 35

How terrible was the depression of the 1970s?

Answer 35

SEEMED FAR WORSE THAN IT WAS

• Kept inflation at 4% 1973-9 compared with West European average of 11.9%
• Growth rates still better than 1919-50 levels, but in contrast with prosperity of the recent years they caused concern
• Living/working standards generally good: pay rises, holidays
• Unemployment never exceeded 8%

Question 36

The Character of Helmut Schmidt as Chancellor

Answer 36

• More decisive than his predecessor, Brandt
• Conservative Social Democrat, did not sympathize with left of party
• Continued ‘ostpoltik’ strategy
• Stayed in power for four terms, until 1982

Question 37

What crises did Helmut Schmidt face as chancellor

Answer 37

• Economic
• Mogadishu incident: RAF kidnap of President of the Federal association of German Industry, demands of release of 11 terrorists associated with Baader Meinhof Gang, Schmidt refuses–>Kidnap Germany bound passenger plane, commandos storm plane and rescue all passengers (President of FAGI is murdered, still success)
• Conflict in Party: nuclear issue of US permitted to station missiles in Germany, left wing hostility. Conflict over economic policy of restricting circulation to combat inflation
• External opposition from pressure groups: Green Party formed 1980, combat nuclear power stations/airport building

Question 38

Schmidt’s resignation, and ……’s succession

Answer 38

• 1982, SPD support in decline
• CDU/CSU under Helmut Kohl had reunited following division over ostpoltik
• FDP pull out of coalition in 1982 to form new one with Kohl who is made Federal Chancellor

Question 39

Economic policy of Kohl’s chancellorship

Answer 39

• Revived ‘Social Market Economy’ principles
• Tax cuts, kept annual budget increases to less than 3%, but continued to subsidise industry and agriculture + keep high welfare spending
• Unemployment 2.2 million in 1987
• Fall in oil prices in 1985= inflation from 6.2% (1981) to 0.6% (1986)

Question 40

Factors that destabilised Kohl as chancellor, reflection in elections, and his continuance as chancellor

Answer 40

Destabilizing factors:

• Fighting between coalition partner (FDP) and Straus (CDU/CSU)
• Sleazy behavior: Industry behavior donating to the coalition. Not direct involvement but reflected poorly
• Bitburg affair: reconciliation ceremony for 40th anniversary of the end of WW2 in graveyard with SS soldiers, accompanied by President Reagan

Election reflection:

• 1987: Lowest point since 1989
• FDP vote ^ to 9.1%, Green Party make gains

Continuance as Chancellor:

• Support of Genscher (FDP)
• Influence in the events of Germany’s re-unification (?)