<div>The two Germanies, arising from the unpromising ashes of defeated Nazi Germany, came to represent opposing models of state and society. The Federal Republic established itself as a remarkably stable democracy and successful social market economy; the German Democratic Republic developed an apparently exemplary form of "actually existing socialism" and became a pillar of the Soviet bloc. Then in 1989, the "gentle revolution" in East Germany added a new twist with the collapse of Communist rule. With rapid reunification, the united Germany of 1990 faced new challenges as the unprecedented transformation created a multitude of economic problems and social tensions.<br></div>