Beginning with the Holy Roman Empire, Germany evolved into various fragmented states, after which, the 16th-century Reformation, led by Martin Luther, challenged the Catholic Church's dominance. The Thirty Years' War (1618-1648) devastated Germany, leading to territorial and political upheaval. In 1871, Otto von Bismarck's skillful diplomacy and military prowess united the numerous German states into the German Empire, establishing Germany as a major European power. In the 20th century, Germany's rapid industrialization led to prosperity, but tensions and rivalries contributed to World War I. The Treaty of Versailles (1919) imposed harsh penalties on Germany, fueling resentment and sowing the seeds for future conflict. After World War II, Germany was divided into the East and West states which symbolized the broader Cold War struggle between the Western allies and the Soviet Union. However, peaceful protests and the fall of the Berlin Wall in 1989 marked the end of the Cold War and paved the way for German reunification in 1990.
Since reunification, Germany has become a key player in European politics and in the late 20th century, the country played a pivotal role in the formation of the European Union. Germany has a parliamentary federal republic political system. It is governed by a Chancellor who leads the executive branch, supported by a Cabinet. The Federal President, a ceremonial figurehead, represents the nation. The Bundestag (lower house) and Bundesrat (upper house) form the bicameral legislature, ensuring representation and checks on power.
After World War II, the nation underwent extensive reconstruction, known as the "Miracle on the Rhine," becoming a leading industrial power. From its industrialization in the 19th century, it became a global leader in precision engineering and machinery during the early 20th century. After World War II, the focus shifted to the automotive and electronics industries, solidifying its reputation for high-quality products. Presently, it stands as the largest economy in Europe, renowned for its manufacturing prowess and export-oriented industries, being the world’s third largest exporter and importer. Key sectors include automotive, machinery, and pharmaceuticals. The country also faces challenges including the need for continued innovation to maintain its global competitiveness in the evolving economic and geopolitical landscape.