Internal developments in the West 1961-1989 Flashcards
Key date: Erhard becomes chancellor
October 1963
Key date: Kiesenger forms the grant coalition
December 1966
Key date: Rudi Dutschke is shot
April 1968
Key date: Emergency law is passed by the Bundestag
May 1968
Key date: Brandt becomes Chancellor
October 1969
Key date: Brandt is re elected
November 1972
Key date: Rise in oil prices
November 1973
Key date: Brandt resigns, Schmidt becomes chancellor
May 1974
Key date: SPD/FDP coalition under Schmidt just manages to retain power
October 1976
Key date: Mogadishu incident
October 1977
Key date: Green party formed
1980
Key date: Kohl replaces Schmidt as chancellor
October 1982
Key date: FDP/CDU/CSU coalition under Kohl retains power with reduced majority
January 1987
Economic downturn change 1964-5
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
Factors contributing to Erhard’s resignation in November 1966
- 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
The Grand Coalition of 1966-9
- Temporary SDP/CDU/CSU coalition to combat worsening conditions of the state
- SDP had chance to show ability, CDU/CSU escaped FDP demands
What were the criticisms of the Grand Coalition of 1966-9
- 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
Grand coalition, political developments (action towards KPD)
- Allowed KPD to form in 1968
- Had continued as an underground movement
- legitimate party>underground network
Economic policies of the Grand Coalition
- 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%
How successfully did the Grand Coalition’s tackle the economic downturn of 1965?
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
Presidential and Central elections of 1969
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
Causes of the Student protests of 1968
- 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
Events of the student protests of 1968
-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
Social development under Brandt: Welfare
- 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
Social development under Brandt: Education
- 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
Social development under Brandt: Employment
- 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
Social development under Brandt: Liberalisation
- Voting age lowered to 18 years old
- Equality of sexes increased, abortion became easier
- Censorship/laws against homosexuality
- Criminal law reformed, more lenient
What problems did Brandt face in his chancellorship? - Inflation
- 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
What problems did Brandt face in his chancellorship? - terrorism
- Terrorism 1970-72
- Stringent measure used to combat it caused opposition from younger members of party
- Later awarded nobel peace prize
What problems did Brandt face in his chancellorship? - Opposition to Ostpoltik
- 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
Factors contributing to the resignation of Willi Brandt
- 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
Student revolt and urban terrorism in the 1970s
- 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
What economic problems did the FRG face?
- 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
How did Schmidt react to the economic problems of the FRG, and how successful were his strategies for overcoming them?
- 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
How terrible was the depression of the 1970s?
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%
The Character of Helmut Schmidt as Chancellor
- 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
What crises did Helmut Schmidt face as chancellor
- 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
Schmidt’s resignation, and ……’s succession
- 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
Economic policy of Kohl’s chancellorship
- 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)
Factors that destabilised Kohl as chancellor, reflection in elections, and his continuance as chancellor
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 (?)
