The new German Empire was a federal one: each of its twenty-five constituent states (kingdoms, grand duchies, duchies, principalities, and free cities) retained its autonomy. The King of Prussia, as German Emperor didn't have sovereignity over the entirety of Germany but as the first amongst equals. Bismarck was also appointed as the Imperial Chancellor of the German Empire, but retained his Prussian offices including those of Minister-President and Foreign Minister; thus, he held almost complete control of both domestic and foreign policy.
He almost changed the course of the German Nation by his tireless efforts and built it into one of Europe's superpowers. The credit of the German Nation's unification belongs to Bismarck from the collection of separate principalities and Free Cities since the era of Charlemagne. Over thousand years various kings and rulers had tried to unify the German states without success until Bismarck came into the scene and made it into a single country and one of the most powerful nations in Europe.
Bismarck by the realisation of the Austro-Hungarian problems of different nationalities within one state, tried to Germanize the state's national minorities, situated mainly in the borders of the empire, such as the Danes in the North of Germany, the French of Alsace-Lorraine and the Poles in the East of Germany.
Although Bismarck had no personal hate against Poles, his policies concerning them, which were usually motivated by tactical considerations of what was best for Germany and were generally unfavourable to Poles, became a grave burden for German-Polish relations for a long time.
In order to avoid alienating the United Kingdom, he declined to seek a colonial empire or an expansion of the navy. In 1872, he extended the hand of friendship to the Austro-Hungarian Empire and Russia, whose rulers joined Wilhelm I in the League of the Three Emperors. Bismarck also maintained good relations with Italy.
During 1873, Germany, and much of the rest of Europe, had endured the Long Depression since the crash of the Vienna Stock Exchange in 1873. For the first time in Germany since vast industrial development in the 1850's after the 1848-49 revolutions, a downfall had hit the German economy. To aid faltering industries, Bismarck decided to abandon free trade and establish protectionist tariffs and created chaos in the relations with neighbouring European nations.
After Russia's victory over the Ottoman Empire in the Russo-Turkish War, Bismarck helped to negotiate a settlement at the Congress of Berlin in 1878. Russia had previously secured great advantages in southeastern Europe when it made peace by ratifying the Treaty of San Stefano. Bismarck and other European leaders, however, opposed the growth of Russian influence, and sought to protect the power of the Ottoman Empire. The Treaty of Berlin revised the Treaty of San Stefano, reducing the concessions offered to Russia. As a result, Russo-German relations suffered; the Russian Prince Gorchakov denounced Bismarck for compromising his nation's victory. The relationship between Russia and Germany was further weakened by the latter's protectionist policies.
In February 1888, during a Bulgarian crisis, Bismarck addressed the Reichstag on the dangers of a European war. For the first time he dwelt upon the imminent possibility that Germany would be forced to fight on two fronts and he spoke of the peace at the final years of his tenure.
Bismarck's astute, cautious, and pragmatic foreign policies allowed Germany to retain peacefully the powerful position into which he had brought it; maintaining amiable diplomacy with almost all European nations. France, the main exception, was devastated by Bismarck's wars and his harsh subsequent policies towards it and became one of Germany's most bitter enemies in Europe.
During most of his nearly thirty year-long tenure, Bismarck held undisputed control over the government's policies. Bismarck proved himself as one of the most capable European statesmen of the nineteenth century by his clever statesmanship and proved himself as the "Iron Chancellor".
Though he was forced to resign from his office over disputes on domestic policies with Emperor William II, Bismarck left a lasting legacy in Europe and around the world. The German Nation and the Germans around the world remebered him by the creation of numerous statues and memorials around the German cities, towns, and countryside including the famous Bismarck Memorial in Berlin, Bismarck Sea and Bismarck Archipelago in the vicinity of then German colony in New Guinea as well as the City of Bismarck in the US State of North Dakota.
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