1970-1993
After the introduction of the TGV in France, the ICE system of high speed passenger trains was developed. Significant stretches of new high speed track, like the Hanover-Würzburg high-speed rail line, had to be laid or upgraded. Other characteristics of this epoch are the introduction of computer systems and the steps taken towards an integrated system of European railways. Externally, rolling stock displayed more colourful and varied livery schemes.
The two German states were reunified in October 1990 with both DB and DR now being special funds of the German Federal government. Article 26 of the Unification Treaty (Einigungsvertrag) stipulated the DR to be merged with DB at the earliest opportunity. The DB, in the interim, initiated new coordinations in businesses with the DR, started IC and ICE services into Berlin, and extended IC and ICE services to major cities in eastern Germany. Administratively, on June 1, 1992 the DB and DR formed a joint board of directors which governed both entities. However, the merger was delayed over the structure of merged railway due to concerns by German politicians on the ever-increasing annual operating deficits incurred by the DB and DR. After several years of delays, the Bundesverkehrsministerium proposed a comprehensive reform of the German railway system (Bahnreform) which was approved by the Bundestag in 1993 and went into effect on 1 January 1994. At the heart of the reform package was a) the merger of the DB and the DR and b) the change of the form of the enterprise into a stock corporation. Nevertheless, the Deutsche Bahn AG was still publicly owned.
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