Otto von Bismarck is appointed Chancellor of the German Empire.
Otto Prince of Bismarck, Count of Bismarck-Schönhausen, Duke of Lauenburg (German: Otto Fürst von Bismarck, Graf von Bismarck-Schönhausen, Herzog zu Lauenburg, pronounced [ˈɔtoː fɔn ˈbɪsmaʁk] (listen); 1 April 1815 – 30 July 1898), born Otto Eduard Leopold von Bismarck, was a conservative German statesman and diplomat. From his base in the upper class of Junker landowners, Bismarck rose rapidly in Prussian politics. He masterminded the unification of Germany in 1871 and served as its first chancellor until 1890, in which capacity he dominated European affairs for two decades. He had served as the chancellor of the North German Confederation from 1867 to 1871 and alongside the office of chancellor of Germany, he was Prussia's minister president and the minister of Foreign Affairs from 1862 to 1890. Before his rise to executive power, Bismarck was the Prussian ambassador to Russia and France and served in both houses of the Prussian Parliament. He cooperated with King Wilhelm I of Prussia to unify the various German states, a partnership that would last for the rest of Wilhelm's life. King Wilhelm granted Chancellor Bismarck the titles of Count of Bismarck-Schönhausen in 1865 and Prince of Bismarck in 1871. Bismarck provoked three short, decisive wars against Denmark, Austria, and France. Following the victory against Austria, he abolished the supranational German Confederation and instead formed the North German Confederation as the first German national state, aligning the smaller North German states behind Prussia, and excluding Austria. Receiving the support of the independent South German states in the Confederation's defeat of France, he formed the German Empire – which also excluded Austria – and united Germany.
With Prussian dominance accomplished by 1871, Bismarck skillfully used balance of power diplomacy to maintain Germany's position in a peaceful Europe. To historian Eric Hobsbawm, Bismarck "remained undisputed world champion at the game of multilateral diplomatic chess for almost twenty years after 1871, [and] devoted himself exclusively, and successfully, to maintaining peace between the powers". However, his annexation of Alsace–Lorraine gave new fuel to French revanchism and Germanophobia. Bismarck's diplomacy of Realpolitik and powerful rule at home gained him the nickname the Iron Chancellor. German unification and its rapid economic growth was the foundation to his foreign policy. He disliked colonialism but reluctantly built an overseas empire when it was demanded by both elite and mass opinion. Juggling a very complex interlocking series of conferences, negotiations and alliances, he used his diplomatic skills to maintain Germany's position.
A master of complex politics at home, Bismarck created the first welfare state in the modern world, with the goal of gaining working class support that might otherwise go to his Socialist opponents. In the 1870s, he allied himself with the low-tariff, anti-Catholic Liberals and fought the Catholic Church in what was called the Kulturkampf ("culture struggle"). He lost that battle as the Catholics responded by forming the powerful German Centre Party and using universal male suffrage to gain a bloc of seats. Bismarck then reversed himself, ended the Kulturkampf, broke with the Liberals, imposed protective tariffs, and formed a political alliance with the Centre Party to fight the Socialists. A devout Lutheran, he was loyal to his ruler, Kaiser Wilhelm I, who argued with Bismarck but in the end supported him against the advice of his wife Empress Augusta and his heir Crown Prince Frederick William. While Germany's parliament was elected by universal male suffrage, it did not have much control of government policy. Bismarck distrusted democracy and ruled through a strong, well-trained bureaucracy with power in the hands of a traditional Junker elite that consisted of the landed nobility in eastern Prussia. In his role as chancellor, he largely controlled domestic and foreign affairs. The year 1888 saw a quick transition on the German throne from Wilhelm I to his son Frederick III to Frederick's son Wilhelm II. The headstrong Kaiser Wilhelm II dismissed Bismarck from office. He retired to write his memoirs.
Bismarck was strong-willed, outspoken and overbearing, but he could also be polite, charming and witty. Occasionally he displayed a violent temper – which he sometimes feigned to get the results he wanted – and he kept his power by melodramatically threatening resignation time and again, which cowed Wilhelm I. He possessed not only a long-term national and international vision but also the short-term ability to juggle complex developments. Bismarck became a hero to German nationalists; they built many monuments honoring the founder of the new Reich. Many historians praise him as a visionary who was instrumental in uniting Germany and, once that had been accomplished, kept the peace in Europe through adroit diplomacy. Historian Robert K. Massie has noted Bismarck's popular image was as "gruff" and "militaristic", while in reality "Bismarck's tool was aggressive, ruthless diplomacy."