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The term "Lesser Germany" (German: Kleindeutschland, pronounced [ˌklaɪ̯nˈdɔɪ̯t͡ʃlant] ) or "Lesser German solution" (German: Kleindeutsche Lösung) denoted essentially exclusion of the multinational Austria of the Habsburgs from the planned German unification as an option for solving the German question, in opposition to the one of 'Greater Germany'.
In the 19th century, a part of the Austrian Empire belonged to the German Confederation. In the revolutionary era of 1848–1850, it was discussed whether Austria or a part of Austria could belong to a new German federal state. In 1867–1871, the 'Lesser Germany' became reality: a federal state under leadership of Prussia and without Austria. After that, the term lost its significance because since then 'Germany' is usually identified as this Lesser Germany.
The other term, Greater Germany, remained in use for those who sought to incorporate Austria or the German-speaking parts of Austria into Germany. This became a political issue in the aftermath of World War One and then again in 1938–1945. During the Cold War, when Germany was divided, a unified Germany was called 'Gesamtdeutschland'.