Germany 1945-1950 - Problems of the 'Economic Miracle'
In 1945, Europe was devastated by the effects of the Second World War. The determination to reconstruct Europe was forged both from the disaster of war and from dreams of the creation of a stabilised and more equitable peace.
After the complete and unconditional surrender of Germany in May 1945 the four allied powers, Britain, America, France and the Soviet Union, through the so-called Berlin Declaration of June 5th, became the supreme authority in Germany. The only level at which a certain degree of German executive power continued to exist was that of local administration. The three-power conference of Berlin in July-August, usually known as the Potsdam Conference, set up a system of allied control in Germany, of which the central instrument was the Allied Control Council. The Potsdam Agreement defined the aims of the allied occupation in the following way: the complete disarmament and demilitarisation of Germany, the total eradication of 'the Nazi Party and its influence (de-Nazification), 'preparation for the eventual reconstruction of German political life on a democratic basis', and preparations for the return of Germany, in the future, to peaceful co-operation with other nations.
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