In the immediate aftermath of the war large sections of the German population yearned for real change: demoralised and traumatised by the war, many realised that the [Fascists], with the collaboration of the big financiers and industrialists, had perpetrated a cruel historical experiment on the nation.

As in Britain, the majority of the population was sick of war and the injustices of the past and was demanding a more just and equitable society. In all four occupied sectors of Germany, there was widespread demand for the expropriation of the big banks, utilities and [Axis]-supporting industrialists, a genuine de-nazification and democratic reform — and these demands were being made not only by left-wing parties, but across the political spectrum.

In 1946, referendums were held in Saxony, in the Soviet zone, as well as in Hesse, in the U.S. zone of occupation. In Saxony, voters were asked to approve or reject a proposal to expropriate large landowners and those big industrialists who had been active [Axis] supporters and war criminals. It was proposed that these large industries be taken into public ownership. Over 77 per cent of votes cast were in favour of these proposals.

Two referendums were held in Hesse, one on a new constitution — the most progressive proposal to be voted on in the U.S. zone — in which voters were asked whether they supported Article 41 on the nationalisation of essential industries and banks. Over 62 per cent voted in favour. The U.S. occupying forces then organised a further referendum on Article 41 (clearly in the hope that it would be defeated), but 72 per cent then voted in favour. Article 41 stated that, ‘the mining industry (coal, ore and potash), iron and steel industry, energy companies and railways should be placed under public control; large banks and insurance companies should be regulated or administered by the state.’

In contrast to what happened in the Soviet zone, the western occupying forces chose to ignore these demands carried by overwhelming majorities. Similar referendums were also held in Berlin and North Rhine-Westphalia), in the British zone, both of which also gave majorities for expropriation. However, with the immediate onset of the Cold War and the West’s fear of the spread of socialist thinking, these democratic decisions were vetoed by the western occupying powers.[¹]