German Confederation - Zollverein: Economic Integration

Zollverein: Economic Integration

Further efforts to improve the confederation began in 1834 with the establishment of a customs union, the Zollverein. In 1834, the Prussian regime sought to stimulate wider trade advantages and industrialism by decree — a logical continuation of the program of Stein and Hardenberg less than two decades earlier. Historians have seen three Prussian goals: as a political tool to eliminate Austrian influence in Germany; as a way to improve the economies; and to strengthen Germany against potential French aggression while reducing the economic independence of smaller states.

Inadvertently, these reforms sparked the unification movement and augmented a middle class demanding further political rights, but at the time backwardness and Prussia's fears of its stronger neighbors were greater concerns. The customs union opened up a common market, ended tariffs between states, and standardized weights, measures, and currencies within member states (excluding Austria), forming the basis of a proto-national economy.

By 1842 the Zollverein included most German states. Within the next twenty years the output of German furnaces increased fourfold. Coal production grew rapidly as well. In turn, German industry (especially the works established by the Krupp family) introduced the steel gun, cast-steel axles, and a breech loading rifle, exemplifying Germany's successful application of technology to weaponry. Germany's security was greatly enhanced, leaving the Prussian state and the landowning aristocracy secure from outside threat. German manufacturers also produced heavily for the civilian sector. No longer would Britain supply half of Germany's needs for manufactured goods, as it did beforehand. However, by developing a strong industrial base, the Prussian state strengthened the middle class and thus the nationalist movement. Economic integration, especially increased national consciousness among the German states, made political unity a far likelier scenario. Germany finally began exhibiting all the features of a proto-nation.

The crucial factor enabling Prussia's conservative regime to survive the Vormärz era was a rough coalition between leading sectors of the landed upper class and the emerging commercial and manufacturing interests. Marx and Engels, in their analysis of the abortive 1848 Revolutions, defined such a coalition: "a commercial and industrial class which is too weak and dependent to take power and rule in its own right and which therefore throws itself into the arms of the landed aristocracy and the royal bureaucracy, exchanging the right to rule for the right to make money." Even if the commercial and industrial element is weak, it must be strong enough (or soon become strong enough) to become worthy of co-optation, and the French Revolution terrified enough perceptive elements of Prussia's Junkers for the state to be sufficiently accommodating.

While relative stability was maintained until 1848, with enough bourgeois elements still content to exchange the "right to rule for the right to make money", the landed upper class found its economic base sinking. While the Zollverein brought economic progress and helped to keep the bourgeoisie at bay for a while, it increased the ranks of the middle class swiftly - the very social base for the nationalism and liberalism that the Prussian state sought to stem.

The Zollverein was a move toward economic integration, modern industrial capitalism, and the victory of centralism over localism, quickly bringing to an end the era of guilds in the small German princely states. This led to the 1844 revolt of the Silesian Weavers, who saw their livelihood destroyed by the flood of new manufactures.

The Zollverein also weakened Austrian domination of the Confederation as economic unity increased the desire for political unity and nationalism.