Introduction
The nineteenth century saw economic transformation across the German lands. Economic change not only reshaped society but also strengthened demands for national unity and political cohesion.

Economic Modernisation and its Influence on Unity

Economic modernisation was a central driver in reshaping German society during the nineteenth century. As industries expanded, agriculture evolved, and new technologies spread, the interconnectedness of the German states deepened. This made cooperation between states not only desirable but necessary, linking economic progress directly to the question of national identity.

• The rise of urbanisation and industrial centres created cross-regional economic links.

• Growing trade required reduced barriers, encouraging cooperation.

• Shared economic challenges and opportunities fostered mutual reliance among German states.

Economic Nationalism

Economic nationalism — the deliberate use of policies to foster growth and independence — became a vital force. German intellectuals and policymakers increasingly argued that prosperity required cooperation across political boundaries.

Economic nationalism was both an ideological tool and a practical necessity, pushing rulers and elites to consider broader political unity.

The Zollverein and Economic Integration

The creation of the Zollverein (Customs Union, 1834) marked a turning point.

A colour-coded map of the Deutscher Zollverein within the German Confederation. It distinguishes the 1834 core and later accessions, highlighting Prussia’s central role in economic integration. Source

By abolishing tariffs between member states and establishing common external duties, the Zollverein:

• Stimulated internal trade across German lands.

• Fostered economic interdependence, reducing reliance on Austria and other external markets.

• Encouraged a sense of shared economic destiny among participating states.

The Zollverein excluded Austria, symbolising its declining role within German economic affairs. This strengthened Prussian leadership and gave Prussia a central role in shaping both economic and political integration.

Industrialisation and the Push for Unity

The industrial revolution intensified demands for national integration. Expanding industries required large, unified markets, as fragmented borders and tariffs restricted efficiency.

• Textiles, coal, and iron industries benefited from open internal markets.

• Railway expansion accelerated economic growth and physically linked disparate regions.

• Industrialisation encouraged the rise of a politically conscious middle class who demanded greater participation in shaping economic and political policies.

Industrialisation therefore aligned economic interest with political goals, creating pressure for constitutional reforms and closer integration.

Railways as Engines of Integration

Railways were particularly transformative. They linked distant states, accelerated trade, and allowed for the rapid movement of goods, people, and ideas.

By the 1850s:

• Railway networks connected Prussia to southern and western German states, fostering cross-regional economic ties

An 1849 railway map of Germany and neighbouring lands. The spread of railways across state borders illustrates the infrastructure that accelerated economic interdependence and strengthened unity. Source

• The circulation of newspapers and pamphlets increased, reinforcing a shared cultural and political consciousness.

• The mobility of workers and soldiers created a sense of common experience, aligning with nationalist sentiment.

Thus, railways became not only physical infrastructure but also symbolic of the momentum towards unity.

Economic Debates: Free Trade vs. Protection

Economic change provoked debate over whether Germany’s prosperity required free trade or protectionist policies.

• Free traders argued that openness to global markets would maximise growth.

• Protectionists believed that tariffs were essential to safeguard industries against British competition.

These debates intersected with nationalism:

• Protectionist policies were often justified in terms of strengthening Germany’s independence from foreign influence.

• Free trade advocates argued that integration within Germany was a prerequisite for competing internationally.

Economy and the Prospects of Political Unity

By the mid-nineteenth century, economic change had made the idea of German unity increasingly practical. Economic interdependence reduced the viability of political fragmentation, as states risked being left behind if they resisted integration.

Several key ways in which the economy influenced unity include:

• Prussia’s economic dominance through the Zollverein positioned it as the natural leader of German unification.

• The growing middle-class demand for liberal constitutions linked economic modernisation to political reform.

• Railways and industrialisation created common structures and shared challenges, binding states together.

Prussia’s Role

Prussia’s leadership in economic matters translated into political leadership. Its ability to exclude Austria from the Zollverein highlighted the shift in power dynamics and prepared the ground for the later political unification of Germany in 1871.

Prussia’s strong fiscal base, advanced industries, and military efficiency owed much to its economic modernisation. These strengths ultimately enabled it to dominate the unification process.

Conclusion: The Economy as a Foundation of Nationalism

Economic change provided both the means and the rationale for German unification. While culture and politics fuelled nationalism, the practical necessities of trade, industry, and modern infrastructure ensured that unity was not merely an ideal but a growing necessity. As such, the economy did not merely accompany the nationalist project; it actively shaped and propelled it forward.