For unifying Germany, the states decided in the beginning, to take on an economic approach, leading to what was known as ‘Coal and Iron’. ‘Coal and iron’ refers to economic ties unifying Germany. The unification of Germany did not just mean that many states had become one country; there were problems such as varying languages, currencies, and ethnic minorities etc., which needed to be countered with diligence and wisdom.
For this, various unions such as Zollverein were formed who managed tariffs and economic policies within their territories.
It created a free-trade area throughout much of Germany and is often seen as an important step in German reintegration. It was essential in strengthening Prussia and developing nationalism among the German states.
In 1818, a custom union was established by Prussia. It abolished all tariff barriers within Prussian territory. Prussia became economically supreme in Germany because the Zollverein stimulated Prussian trade. This formation led to higher spirits of nationalism in Germany through economic means and coaxed people into voicing their desire to become one united country.
There were quite some important factors behind the attempts taken by leaders to unify Germany, such as the presence of raw materials in Prussia, the development of the railways and the Zollverein in Germany, and the industrialization, which took place in Prussia, particularly in the 1850s. This economic strength, had been rooted from the Congress of Vienna, where Prussia was given mineral rich land. It gave Prussia the coal and iron producing areas of the Rhineland, and the mineral rich Ruhr and Saar.
The accessibility of such natural resources generated an economic boost in Prussia in the 1850s. As a result, Germany became Europe’s largest producer of basic industrial supplies, such as coal and iron. New mines and iron works were also opened in Prussian territory, such as the Ruhr Valley. When compared, it is observed that in 1846, Germany produced only 3.2m tons of coal, whereas in 1871, nearly 30m tons of coal were produced.
Most importantly, economic development assisted the creation of a strong, powerful Prussia. It was under this Prussia that unification took place, and without such strength, it may never have succeeded. Furthermore, the creation of a comprehensive railway system was also significant in the unification of Germany. It further underpinned the economic and military strength of Prussia, and this strength was essential in Prussia success in the wars of German unification.
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