- Before 1818, each district in Prussia had its own customs and there were as many as 67 tariff areas in Prussia alone.
- These areas stood as obstacles in the way of trade and unity and consequently Prussia could not compete with Great Britain.
- On account of the long line of customs houses, there was a lot of smuggling.
- In 1819, a ‘Customs Union’ called ‘Zollverein’ was formed under the leadership of Prussia consisting of neighboring states based on free trade. This brought economic unity to the Germans.
- For the first time, Germany became a fiscal and commercial unit. The Zollverein united the German States in bonds of mutual economic interest.
- It united them under the leadership of Prussia and it accustomed them to the exclusion of Austria from the Germanic body.
- The Zollverein has brought the sentiment of the German nationality out of the regions of hope and fancy into those of positive and material interests.
- The general feeling in Germany towards the Zollverein is that it is the first step towards what is called Germanization.
- It has broken down some of the strongest holds of alienation and hostility.
- By a community of interests on commercial and trading questions, it has prepared the way for a political nationality.
- After 1830, many such trade agreements were created and Austria was excluded from these.
- It provided conducive circumstances for development of trade and industry and hence economic consolidation which laid the foundation of unification.