Germany: The Zollverein and Railways

In the early 19th century the German lands were divided into dozens of states, each with its own tolls and currencies, which hampered trade. In 1834 Prussia led the creation of the Zollverein, a customs union that removed internal tariffs among most German states and created a large common market. The economist Friedrich List, who argued that young industries needed temporary protection from British competition, championed both the customs union and railways.

Germany's first steam railway opened between Nuremberg and Fürth in 1835, and lines spread rapidly, creating demand for coal, iron and engineering. Railways and the Zollverein helped knit together an economic Germany before political unification in 1871. Historians debate how much economic integration caused unification, but most agree it gave Prussia influence and strengthened ties among the German states.