Zollverein
Zollverein (German for "customs union") was formed between the 38 states of the German Confederation in 1834 during the Industrial Revolution to create a better trade flow and reduce internal competition. The Zollverein totally excluded Austria because of its highly protected industry; this would later intensify Austro-Prussian conflict. The Zollverein was dissolved in 1866 because of the south German states' support for Austria in the Austro-Prussian War, but it was re-established in 1867 with the south German states again participating. The new Zollverein was stronger, in that no individual state had a veto.
The Zollverein had been originally established by Prussia early in the 19th century. At first it included only the close neighbours of Prussia, and was seen as a way to transport goods between the two non-contiguous parts of Prussia: Eastern Prussia and Western Prussia. The greater customs union of 38 states was the fruit of a continuous effort by Prussian bureaucrats over several decades. Its gradual inception was made against the more modest efforts of the Austrian bureaucracy to establish their own customs union with neighbouring states.
Some economic historians note that it is misleading to say that Bismarck united Germany by the sword, since the economic grounds for this union had already been laid down by the Zollverein.
Dates
1828 Original customs convention between Prussia and the Grand Duchy of Hesse
1831 Hesse-Cassel joined.
1834 Bavaria, Württemburg, Saxony, Thurungia etc joined.
1851 Hanover, Oldenburg joined.
1868 Schleswig-Holstein, Kausenburg, Mecklenburg.
1871 Alsace-Lorraine joined.
External link:
de:Deutscher Zollverein