Leslie Massey
The Zollverein, or German Customs Union, was a coalition of German states formed to manage tariffs and economic policies within their territories. Austria was excluded from the Zollverein due to its highly protectionist trade policy. The Habsburg Monarchy, which retained a more agrarian character, wanted its products to be protected from outside competition and felt that the tariffs of the new association were too low. Prussia, the primary driver behind the creation of the customs union, had three goals in its development: to eliminate Austrian influence in Germany, to improve the economies, and to strengthen Germany against potential French aggression. Thus, while the Zollverein was not originally designed to isolate Austria, it increasingly became a tool to do so.
| Characteristics | Values |
|---|---|
| Reason for Exclusion | Austria was excluded from the Zollverein due to its highly protectionist trade policy |
| Reason for Protectionist Trade Policy | The Habsburg empire wanted their products protected against outside competition |
| Result of Exclusion | Austria was isolated within the German Confederation |
| Result of Exclusion | Austria fell behind during the 1850s and 1860s |
| Result of Exclusion | Austria remained suspicious of Prussia and generally pro-Austrian |
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![Customs Tariff of the German Customs Union 1911 [Leather Bound]](https://m.media-amazon.com/images/I/617DLHXyzlL._AC_UY218_.jpg)
What You'll Learn
- Austria's highly protectionist trade policy
- The Zollverein's focus on economic rather than political unification
- Prussia's desire to eliminate Austrian influence in Germany
- Austria's agrarian character and less industrialised economy
- Austria's exclusion from the Zollverein was not the original intention
Austria's highly protectionist trade policy
Austria was excluded from the Zollverein, or German Customs Union, due to its highly protectionist trade policy. The Zollverein was a coalition of German states formed to manage tariffs and economic policies within their territories. The union sought to limit trade and commercial barriers between member states, but it upheld protectionist barriers against outsiders.
Austria's exclusion from the Zollverein was also influenced by the political goals of Prussia, which sought to eliminate Austrian influence in Germany and acquire a dominant position within the German Confederation. The Zollverein provided Prussia with a powerful tool in this struggle for dominance, as it allowed them to improve their economy and strengthen their position against potential French aggression.
The foundation of the Zollverein contributed to economic integration within its territory, fostering the development of large-scale industry in Germany. However, it did not cause the German Industrial Revolution, and the gap between the Zollverein and Austria widened due to the agrarian character of the Habsburg Monarchy and the relatively slower industrial development of its regions in the 1850s and 1860s.
While there were discussions and attempts to integrate Austria into the Zollverein, particularly through a commercial treaty between Austria and Prussia in 1853, these efforts ultimately did not succeed. Prussia's negotiation of a commercial treaty with France in 1861, which lowered tariffs, further complicated Austria's potential inclusion in the Zollverein.
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The Zollverein's focus on economic rather than political unification
The Zollverein, or German Customs Union, was a coalition of German states formed to manage tariffs and economic policies within their territories. The foundation of the Zollverein was the first instance in history in which independent states consummated a full economic union without the simultaneous creation of a political federation or union.
The Zollverein was not formed as a political tool, but rather to foster economic integration and commercial unification. It was a response to the approximately 1800 customs barriers that existed in the German-speaking Holy Roman Empire in Central Europe in the 1790s. These barriers stifled trade, as shipments were inspected and taxed multiple times, increasing the price of goods. The Zollverein sought to limit trade and commercial barriers between member states, while continuing to uphold protectionist barriers against outsiders.
The Zollverein was driven primarily by Prussia, which sought to achieve economies of scale in customs administration and substantial fiscal savings. Prussia also had three goals in the development of the Zollverein: eliminating Austrian influence in Germany, improving the economy, and strengthening Germany against potential French aggression. However, the Zollverein was not originally designed to isolate Austria, and a commercial treaty in 1853 between Austria and Prussia opened up the possibility of Austrian membership. Nonetheless, this never came to pass due to differing economic structures and interests, with the Habsburg Monarchy retaining a more agrarian character and protectionist trade policies.
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Prussia's desire to eliminate Austrian influence in Germany
Prussia was the primary driving force behind the creation of the Zollverein, or German Customs Union, which was formed to manage tariffs and economic policies within member states. The union was established in 1834, and by 1842, most German states had joined, with the notable exception of Austria.
Austria was excluded from the Zollverein due to its highly protectionist trade policies. The Habsburg Empire's industrialists wanted their products to be protected from outside competition, and they believed that the tariffs set by the Zollverein were too low to meet their needs. In contrast, the merchants and bankers of the coastal regions, who depended on foreign trade, found the tariffs too high. Thus, Austria's economic policies were incompatible with those of the Zollverein.
Beyond economic factors, Prussia also had political motivations for excluding Austria from the Zollverein. One of Prussia's goals in establishing the Zollverein was to eliminate Austrian influence in Germany and to acquire a dominant position in the region. By creating a customs union that excluded Austria, Prussia was able to strengthen its own position and reduce Austrian influence over the smaller German states. This was achieved by improving the economies of the member states and reducing their economic dependence on Austria.
The Zollverein's impact on German unification may have been incidental, as it was primarily focused on economic rather than political integration. However, it contributed to the economic unification of Germany and fostered the economic integration of its member states. The smaller states joined the Zollverein for fiscal reasons, seeking the economic benefits of free trade and improved economic policies. While the Zollverein's immediate impact was economic, it had long-term political consequences, as it contributed to the consolidation of Prussia's power and influence over the smaller German states.
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Austria's agrarian character and less industrialised economy
Austria was excluded from the Zollverein due to its highly protectionist trade policies, which were a result of its agrarian character and less industrialised economy.
Austria's economy was dominated by the industrialists of the Habsburg Empire, who sought protectionist policies to shield their products from outside competition. In contrast, the Zollverein aimed to create a free-trade zone in Germany, reducing trade and commercial barriers between member states. The gap between the Zollverein and Austria widened as the economic integration of the Zollverein progressed and the industrial character of its member states became more pronounced.
While the Zollverein contributed to the economic integration of its territory, it was not the sole driving force. The Industrial Revolution, which gained considerable pace from the mid-1840s, was influenced by mechanization in textile mills and coal mines, improved transportation networks, and the emergence of a new upper middle class whose wealth was derived from industrial activity. However, economic historians agree that the Zollverein was not a necessary prerequisite for industrial development, and Austria's more industrial regions fell behind during the 1850s and 1860s.
Despite the potential for Austrian membership discussed in the 1853 commercial treaty between Austria and Prussia, Prussia's policies and different economic structures ultimately prevented Austria's inclusion in the Zollverein. Prussia's focus on economic consolidation and its struggle with Austria for dominance in Germany led to its negotiation of a commercial treaty with France in 1861, further isolating Austria within the German Confederation.
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Austria's exclusion from the Zollverein was not the original intention
The Zollverein, or German Customs Union, was a coalition of German states formed to manage tariffs and economic policies within their territories. It was formally established on 1 January 1834, though its foundations were laid as early as 1818 with the creation of various custom unions among the German states. By 1866, the Zollverein encompassed most German states, excluding Austria.
While Austria's exclusion from the Zollverein may suggest intentional isolation, this was not the original intention. Initially, the Zollverein aimed to foster economic integration and improve trade within the German states. However, as the union evolved, it inadvertently contributed to Austria's isolation within the German Confederation. This outcome resulted from a combination of factors, including Prussian policies, differing economic structures, and competing interests between the two entities.
Austria's highly protectionist trade policy was a significant factor in its exclusion from the Zollverein. The Habsburg Monarchy, encompassing both agrarian and industrial regions, sought to protect its domestic industries from outside competition. In contrast, the Zollverein's tariffs were relatively low, catering to the needs of industrializing states within the union. As a result, the gap between Austria's economic policies and those of the Zollverein widened over time, making it challenging to reconcile their differences.
Another factor contributing to Austria's exclusion was Prussia's role and intentions within the Zollverein. Prussia was the primary driver behind the creation of the customs union, and one of its goals was to eliminate Austrian influence in Germany. Prussia sought to strengthen its position and acquire economic and political dominance within the German states. This ambition inevitably led to tensions with Austria, a major power in the region.
The political landscape of the 1840s and 1850s further influenced the relationship between Austria and the Zollverein. While there were discussions and attempts to integrate Austria into the union, these efforts faced obstacles due to differing economic structures and interests. A commercial treaty between Austria and Prussia in 1853 raised the possibility of Austrian membership, but this prospect remained unrealized due to the factors mentioned earlier.
In summary, while Austria's exclusion from the Zollverein may have resulted in its isolation within the German Confederation, this was not the original intention of the union. The Zollverein's primary focus was economic integration and improvement of trade, but the evolving political and economic dynamics between Prussia and Austria contributed to their divergent paths.
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Frequently asked questions
Austria was excluded from the Zollverein due to its highly protectionist trade policies, which were incompatible with the union's goals of fostering economic integration and free trade among German states.
Austria's exclusion from the Zollverein led to its economic and political isolation within the German Confederation. The Zollverein created a larger market for German-made products, promoting commercial unification and strengthening Germany's position against potential French aggression.
The Zollverein sought to eliminate internal tariff barriers and promote free trade among member states, while Austria's industrialists in the Habsburg Empire wanted higher tariffs to protect their products from outside competition.
In 1853, Austria and Prussia signed a commercial treaty, opening up the possibility of Austrian membership in the Zollverein. However, by 1861, Prussia was negotiating a separate commercial treaty with France, lowering tariffs and moving away from potential Austrian integration.
Prussia's commercial treaty with France in 1862 caused tension within the Zollverein, as non-Prussian members objected to Prussia's hegemonic role. Despite this, the other states needed access to the Prussian market and the enlarged trade zone, so they ultimately accepted Prussia's terms for a renewal of the Zollverein.
