Until , it was generally viewed as a communist state and described itself as a socialist "workers' and peasants' state". Before its establishment, the country's territory was administered and occupied by Soviet forces following the Berlin Declaration abolishing German sovereignty in World War II.
The GDR was dominated by the Socialist Unity Party of Germany SED , a communist party , before being democratized and liberalized in as a result of the pressure against communist governments brought by the Revolutions of This paved the way for East Germany's reunification with West Germany. In , it abolished the goal of unification in the constitution. Internally, the GDR bordered East Berlin , the Soviet sector of Allied-occupied Berlin , which was also administered as the country's de facto capital.
Emigration to the West was a significant problem; as many emigrants were well-educated young people, this emigration economically weakened the state. In numerous social, economic, and political forces in the GDR and abroad β one of the most notable being peaceful protests starting in the city of Leipzig β led to the fall of the Berlin Wall and the establishment of a government committed to liberalization.
The following year, a free and fair election was held in the country, [ 15 ] and international negotiations between the four former Allied countries and the two German states commenced. The negotiations led to the signing of the Final Settlement treaty , which replaced the Potsdam Agreement on the status and borders of a future, reunited Germany.
Both terms were used in East Germany, with increasing usage of the abbreviated form, especially since East Germany considered West Germans and West Berliners to be foreigners following the promulgation of its second constitution in In the West, the centre of political power in East Berlin was referred to as Pankow the seat of command of the Soviet forces in Germany was in Karlshorst , a district in the East of Berlin.
