Improving Relations

West Germany's Willy Brandt, head of the Social Democratic party and chancellor from 1969 to 1974, initiated a policy of normalizing relations with eastern (Communist) Europe. This policy was known as Ostpolitik. In 1970 West Germany made treaties with Poland and the Soviet Union in which West Germany gave up its claim to former German lands east of the Oder River. Great progress was made in relations between East and West Germany. In 1970, for the first time, leaders from both countries met for formal discussions concerning relations. A treaty between East and West Germany was ratified in 1973, recognizing each as a sovereign state. It made possible the entrance of both nations into the United Nations later that year.

Also during the decade, East Germany achieved international acceptance as nations throughout the world, including the United States, recognized its government and established diplomatic relations with it. Domestically, a new nationalization program virtually ended private enterprise in East Germany.

In 1974 Willy Brandt resigned as chancellor of West Germany over a scandal involving the arrest of his personal aide as a spy for East Germany.

Helmut Schmidt, leader of the Social Democratic party, succeeded Brandt as chancellor. Schmidt's coalition collapsed in 1982 after a dispute about how to deal with inflation and high unemployment. He was replaced by Helmut Kohl, leader of the Christian Democratic Union. During this time, East Germany's relations with the West continued to improve. In 1987 Erich Honecker became the first East German leader to visit West Germany.

Meanwhile, East Germany's economy had become stagnant. A declining standard of living contributed to widespread unrest. Many East Germans began fleeing to Western Europe through Hungary, which had eased its travel restrictions. Mass demonstrations occurred throughout East Germany calling for political and economic reform. Honecker resigned in late 1989, and, shortly after, a non-Communist government came into power. Following Honecker's resignation, East Germany opened the borders around West Berlin and dismantled the Berlin Wall. Honecker and several of his associates were arrested after it was revealed that his regime had embezzled state funds.

Parliamentary elections were held in March, 1990, the first multiparty elections in nearly 60 years. After the election, a coalition of non-Communist parties formed a government and began negotiations with West Germany on the issue of reunification.