Political situation in Germany, post 1871

Liberal Era:

• Bismarck needed a parliamentary majority
• he had no choice but to work with the National Liberals
• the Liberals at the time were the strongest party in the Reichstag
• some legislation was passed in the early 1870s:
  - a national currency was introduced
  - the Reichsbank was created (similar to the Bank of England)
  - internal tariff were abolished (tax on German goods)
• National Liberals and Bismarck also united against the Catholic Church
• but things between Bismarck and the Liberals were uneasy and always were, they didn't agree on a lot
• he became annoyed that the Liberals rejected many of his proposals
• the fixed budget for the army's spending was again in question
• in 1874, Bismarck suggested a law that meant the 400,000 men would be automatically financed
• since 80% of parliaments spendadture was on the army it weakened the Reichstag's power so the Liberals opposed it
• Bismarck threatened to call new elections in parliament because he thought the Liberals were trying to undermine the military
• a compromise was eventually settled that the military budget would be fixed for 7 years at a time instead of it being redone annually or set permanently

KULTURKAMPF:

• most of the 1870s consisted of…