East Germany, officially the German Democratic Republic (GDR), was a country in Central Europe from its formation on 7 October 1949 until its reunification with West Germany (Federal Republic of Germany) on 3 October 1990. Until 1989, it was generally viewed as a communist state and described itself as a socialist workers' and peasants' state. The economy of the country was centrally planned and state-owned. Although the GDR had to pay substantial war reparations to the Soviet Union, its economy became the most successful in the Eastern Bloc.
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 Potsdam Agreement established the Soviet-occupied zone, bounded on the east by the Oder–Neiße line. The GDR was dominated by the Socialist Unity Party of Germany (SED), a communist party, before being democratized and liberalized amid the revolutions of 1989; this paved the way for East Germany's reunification with West Germany. Unlike the government of West Germany, the SED did not see its state as the successor to the German Reich (1871–1945). In 1974, it abolished the goal of unification in the constitution. The SED-ruled GDR was often described as a Soviet satellite state; historians describe it as an authoritarian regime.
