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The hard times that swept over the Continent in the late 1840s transformed widespread popular discontent in the German Confederation into a full-blown revolution. After the middle of the decade, a severe economic depression halted industrial expansion and aggravated urban unemployment. At the same time, serious crop failures led to a major famine in the area from Ireland to Russian Poland. In the German states, the hungry 1840s drove the lower classes, which had long been suffering from the economic effects of industrial and agricultural rationalization, to the point of open rebellion. There were sporadic hunger riots and violent disturbances in several of the states, but the signal for a concerted uprising did not come until early in 1848 with the exciting news that the regime of the bourgeois king Louis-Philippe had been overthrown by an insurrection in Paris (February 22–24). The result was a series of sympathetic revolutions against the governments of the German Confederation, most of them mild but a few, as in the case of the fighting in Berlin, bitter and bloody.

When on March 13 Metternich, the proud symbol of the established order, was forced to resign his position in the Austrian cabinet, the princes hastened to make peace with the opposition in order to forestall republican and socialist experiments like those in France. Prominent liberals were appointed to the state ministries, and civic reforms were introduced to safeguard the rights of the citizens and the powers of the legislature. But even more important was the attempt to achieve political unification through a national assembly representing all of Germany. Elections were held soon after the spring uprising had subsided, and on May 18 the Frankfurt National Assembly met in Frankfurt am Main to prepare the constitution for a free and united fatherland. Its convocation represented the realization of the hopes that nationalists had cherished for more than a generation. Within the space of a few weeks, those who had fought against the particularistic system of the restoration for so long suddenly found themselves empowered with a popular mandate to rebuild the foundations of political and social life in Germany. It was an intoxicating moment.

Once the spring uprising was over, the parties and classes that had participated in it began to quarrel about the nature of the new order that was to take the place of the old. There were, first of all, sharp differences between the liberals and the democrats. While the former had comfortable majorities in most of the state legislatures as well as in the Frankfurt parliament, the latter continued to plead, agitate, and conspire for a more radical course of action. There were also bitter disputes over the form that national unification should assume. The Grossdeutsch (“great German”) movement maintained that Austria, the state whose rulers had worn the crown of the Holy Roman Empire for 400 years, should play a leading role in the united fatherland. The Kleindeutsch (“little German”) party, on the other hand, argued that the Habsburgs had too many Slavic, Magyar, and Italian interests to work single-mindedly for the greatness of Germany, that Austria should therefore be excluded from a unified Germany, and that the natural leader of the nation was Prussia, whose political vigour and geographic position would provide efficient government and military security for Germany. Finally, there was a basic conflict between poor and marginalized social groups, many of whom wanted protection against mechanized production and rural impoverishment, and the business interests who sought to use their new political influence to promote economic growth and freedom of enterprise. Popular support for the revolution, which had made the defeat of legitimism during the March days possible, began to dwindle with the realization that the liberals would do no more to solve the problems of the masses than the conservatives had done. While the Frankfurt parliament was debating the constitution under which Germany would be governed, its following diminished and its authority declined. The forces of the right, recovering from the demoralization of their initial defeat, began to regain confidence in their own power and legitimacy.

Their first major conservative victory came in Austria, where the young emperor Francis Joseph found an able successor to Metternich in his prime minister, Felix, Fürst (prince) zu Schwarzenberg. In the summer of 1848 the Habsburg armies crushed the uprising in Bohemia and checked the insurrection in Italy. By the end of October they had subjugated Vienna itself, the center of the revolutionary movement, and now only Hungary was still in arms against the imperial government. At the same time, in Prussia the irresolute Frederick William IV had been gradually persuaded by the conservatives to embark on a course of piecemeal reaction. Early in December he dissolved the constituent assembly that had been meeting in Berlin, unilaterally promulgated his own constitution for the kingdom—which combined conservative and liberal elements—and proceeded little by little to reassert the prerogatives of the crown. Among the secondary states there was also a noticeable shift to the right, as particularist princes and legitimist aristocrats began to recover their courage.

By the time the Frankfurt parliament completed its deliberations in the spring of 1849, the revolution was everywhere at ebb tide. The constitution that the National Assembly had drafted called for a federal union headed by a hereditary emperor with powers limited by a popularly elected legislature. Since the Austrian government had already indicated that it would oppose the establishment of a federal government in Germany, the imperial crown was offered to the king of Prussia. Frederick William IV refused a crown whose source he deplored and whose authority seemed too restricted. This rejection of political consolidation under a liberal constitution destroyed the last chance of the revolutionary movement for success. The moderates, admitting failure, went home to mourn the defeat of their hopes and labors. The radicals, on the other hand, sought to attain their objectives by inciting a new wave of insurrections. Their appeals for a mass uprising, however, were answered mostly by visionary intellectuals, enthusiastic students, radical politicians, and professional revolutionaries. The lower classes remained by and large indifferent. There was sporadic violence, especially in the southwest, but troops loyal to princely authority had little difficulty in defeating the insurrection. By the summer of 1849 the revolution, which had begun a year earlier amid such extravagant expectations, was completely crushed.

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The 1850s: years of political reaction and economic growth

The attempt to achieve national unification through liberal reform was followed by an attempt to achieve it through conservative statesmanship. Frederick William IV had refused to accept an imperial crown vitiated by parliamentary government, but he was willing to become the head of a national federation in which the royal prerogative remained unimpaired. While the Austrian armies were still engaged in the campaign against the revolution in Hungary, Prussia began to exert diplomatic pressure on the smaller German states to join in the formation of a new federal league known as the Prussian Union. If Frederick William IV had acted with enough determination, he might have been able to reach his goal before Francis Joseph could intervene effectively in the affairs of Germany. But he allowed his opportunity to slip away. Though he succeeded through threats and promises in persuading most of the princes to accept his proposals, no irrevocable commitments had been made by the time the Hungarians were defeated in August 1849. Vienna could now proceed to woo the governments, which had in most cases submitted to Prussia only out of weakness and fear. Basically they remained opposed to sacrificing their sovereignty to Prussia. When Schwarzenberg suggested the reestablishment of the old federal Diet, he won the support of many rulers who had agreed to follow Berlin against their will. The nation was now divided into two camps, the Prussian Union on one side and the revived German Confederation on the other. It was only a question of time before they would clash. When both Austria and Prussia decided to intervene in Hesse-Kassel, where there was a conflict between the supporters and the opponents of the prince, Germany stood on the brink of civil war. But Frederick William IV decided at the last moment to back down. His fear overcame his pride, especially after Nicholas I of Russia indicated that he supported Vienna in the controversy. By the Punctation of Olmütz of November 29, 1850, the Prussians agreed to the restoration of the German Confederation, and the old order was fully reestablished in all its weakness and inadequacy.

The years that followed were a period of unmitigated reaction. Those who had dared to defy royal authority were forced to pay the penalty of harassment, exile, imprisonment, or even death. Many of the political concessions made earlier, under the pressure of popular turmoil, were now restricted or abrogated. In Austria, for example, the constitution that had been promulgated in 1849 was revoked, and legitimism, centralization, and clericalism became the guiding principles of government. In Prussia the constitution granted by the king remained in force, but its democratic potential was reduced through the introduction of a complicated electoral system by which the ballots were weighted according to the income of the voters. The consequence was that well-to-do conservatives controlled the legislature. The secondary states returned to the policies of legitimism and particularism that they had pursued before the revolution. In Frankfurt am Main, where the federal Diet now resumed its sessions, diplomats continued to guard the prerogatives of princely authority and state sovereignty. The restoration of the confederal system also served the interests of the Habsburgs, who stood at the pinnacle of their prestige as the saviours of the established order. In Berlin, on the other hand, the prevailing mood was one of confusion and discouragement. The king, increasingly gloomy and withdrawn, came under the influence of ultraconservative advisers who preached legitimism in politics and orthodoxy in religion. The government, smarting under the humiliation suffered at the hands of Austria, was as timid in foreign affairs as it was oppressive in domestic matters. The people, tired of insurrection and cowed by repression, were politically apathetic. The German Confederation as a whole, rigid and unyielding, remained during these last years of its existence blind to the need for reform that the revolution had made clear.

Yet the 1850s, so politically barren, were economically momentous, for it was during this period that the great breakthrough of industrial capitalism occurred in Germany. The national energies, frustrated in the effort to achieve civic reform, turned to the attainment of material progress. The victory of the reaction was followed by an economic expansion as the business community began to recover from its fear of mob violence and social upheaval. The influx of gold from America and Australia, moreover, generated an inflationary tendency, which in turn encouraged a speculative boom. Not only did the value of industrial production and foreign trade in the Zollverein more than double in the course of the decade, but also new investment banks based on the joint-stock principle were founded to provide venture capital for factories and railroads. The bubble burst in 1857 in a financial crash that affected the entire Continent. For many investors the price of overoptimism and speculation was misfortune and bankruptcy. Yet Germany had now crossed the dividing line between a preindustrial and an industrial economy. Although the rural population still outnumbered the urban, the tendency toward industrialization and urbanization had become irreversible. And this in turn had a profound effect on the direction of politics. As wealth continued to shift from farming to manufacturing, from the country to the city, and from the aristocracy to the bourgeoisie, the pressure for a redistribution of political power also gained strength. While the reactionaries were solemnly proclaiming the sanctity of traditional institutions, economic change was undermining the foundation of those institutions. By the end of the decade, a new struggle between the forces of liberalism and conservatism was in the making.