Until the early 19th century, Germany, a federation of numerous states of varying size and development, retained its pre-industrial character, where trade centered around a number of free cities. After the extensive development of the railway network during the 1840s, rapid economic growth and modernization sparked the process of industrialization. Under Prussian leadership Germany was united in 1871 and its economy grew rapidly. The largest economy in Europe by 1900, Germany had established a primary position in several key sectors, like the chemical industry and steel production. High production capacity, permanent competitiveness and subsequent protectionist policies fought out with the US and Britain were essential characteristics.

Konrad Hermann Joseph Adenauer was a German statesman who served as the first chancellor of the Federal Republic of Germany from 1949 to 1963. From 1946 to 1966, he was the first leader of the Christian Democratic Union (CDU), a newly-founded Christian-democratic party, which became the dominant force in the country under his leadership.