3 – He Managed a Remarkable Balancing Act
Bismarck faced two challenges in his role as Chancellor of the new German Empire. First, he needed to keep the empire strong by handling domestic issues and improving the economy. Second, he had to retain the balance of power in Europe and prevent Germany’s enemies from seeking revenge for the defeats they suffered.
On the domestic front, he spent much of the 1870s in the cultural struggle (Kulturkampf) against the Catholic population who made up over one-third of Germany’s population. He placed parochial schools under state control and expelled the Jesuits from the country. Bismarck was clever enough to see the threat of socialism and decided to become allies with the Catholics to fight against the bigger danger.
By the time of unification in 1871, the German Empire was in excellent shape. It possessed an organized society, a large domestic workforce and enormous natural resources. Germany was now the economic powerhouse of Europe and Bismarck looked to consolidate its power by getting the government to subsidize industrialization. The result was a huge increase in steel, iron and coal production. He also understood the need for improved worker welfare which is why a range of benefits were introduced in the 1880s which is covered in the Pensions section.
Although German had the potential to be the powerbroker in Europe, its location meant it was always in danger of a concerted attack by its enemies. In theory, if the hostile countries around Germany could unite, they had the ability to wage a ruinous two-front war. As a result, Bismarck knew the importance of making sure that either France or Russia remained an ally.
His diplomatic abilities really came to the fore during this period. The formation of the League of Three Emperors is a prime example of his negotiating skill. It was a military alliance between Germany, Austria-Hungary and Russia that started in 1873; it collapsed in 1887. Other diplomatic efforts included the Dual Alliance with Austria-Hungary in 1879, the Triple Alliance with Austria-Hungary and Italy in 1882 and the Reinsurance Treaty with Russia in 1887.
By 1888, Bismarck was acutely aware of the potential of a European war and warned the Reichstag about the possibility in a speech. He had created a delicate house of cards that would topple the moment someone less able than him took control.