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1945-1946 - Nuremberg war crimes trials see major Nazi figures executed or imprisoned.
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The monetary, economic and institutional reforms of June 1948 were followed by about 18 months of consolidation with stable to slightly falling prices. Industrial production increased by 24% in 1949 and 12% in the first half of 1950. Over the period the average annual growth rate was 15% per year.
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1949 - Germany is divided. The US, French and British zones in the west become the Federal Republic of Germany; the Soviet zone in the east becomes the communist German Democratic Republic.
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There were income tax reforms over the period 1948 to 1955 to reduce the severity of the income tax program. The West German government was directed involved in investment planning in the "bottleneck sectors" of mining, steel and energy
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The major problem was the capital shortage. Not only was there the problem of the war destruction of capital but the reparation confiscations of capital equipment depleted the capital stock and made entrepreneurs afraid to invest because of the possibility that their investments might be confiscated in the future. Profitability was increasing because wage rates were not increasing as fast as prices and productivity. In other words, unit labor costs were declining.
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1969 - Social Democrat Willy Brandt becomes chancellor and seeks better ties with the Soviet Union and East Germany under Ostpolitik (eastern policy).
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1973 - East and West Germany join the UN.
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1982 - Christian Democrat Helmut Kohl becomes chancellor.
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Despite the economic and political turmoil engulfing the EU, Germany is currently living a period of strong relative economic performance.
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