International competition

The Industrial Revolution left Germany unable to compete with British

firms.

There were also trade barriers between

different German states, including separate

currencies.

Better transport

German businesses wanted to improve train

links within the Confederation, to make

trading goods easier.

By the 1850s, 3000 miles of train lines had

been built, improving the economy.

Impact of Prussia

Prussia took action to improve trading links within her territories, including scrapping all internal taxes in 1818.

Prussia also introduced charges (tariffs) on goods

from outwith Prussia.

Arguments for

Support for economic changes came from

businessmen across the entire Confederation,

uniting different states.

Economic growth after train building showed that cooperation worked

too.

Arguments for

Economic success affected all groups in society.

Growth of the German economy led more jobs,

meaning more people backed closer links.

Industrial changes also inspired political change

too.

Arguments against

German economy lagged behind UK’s industrial

changes, so many workers still saw little benefit by

1850.

Some states concerned that economic links would increase Prussian power.