Postwar: A History of Europe Since 1945

by Tony Judt

the Christian Democratic-run state of the fifties owned or controlled 40 percent of all coal and iron production, two-thirds of electricity-generating plants, three quarters of aluminium manufacturing and, crucially, a majority of German banks. The decentralization of power, in other words, did not mean hands-off government. By maintaining an active economic presence either directly or indirectly (through holding companies), West German regional and national governments were in a position to encourage policies and practices conducive to social peace as well as private profit. Banks, acting as intermediaries between government and the businesses on whose boards bankers typically sat, played a crucial role. Older German economic practices returned, notably price-setting and consensual market-sharing. At the local level especially there had been very little stripping out of Nazi-era bureaucrats, businessmen or bankers, and by the later 1950s much of the West German economy was run in a manner that would have been familiar to the giant trusts and cartels of earlier decades.