Erich Honecker
Leadership of East Germany

While Ulbricht had replaced the state's command economy with, firstly the " New Economic System ", then the Economic System of Socialism, as he sought to improve the country's failing economy, Honecker declared the main task under his New System of Economic Socialism to in fact be the "unity of economic and social politics", essentially through which living standards (with increased consumer goods) would be raised in exchange for political loyalty. Tensions had already led to his once-mentor Ulbricht removing Honecker from the position of Second Secretary in July 1970, only for the Soviet leadership to swiftly reinstate him. Honecker played up the thawing East-West German relationship as Ulbricht's strategy, to win the support of the Soviet leadership under Leonid Brezhnev. With this secured, Honecker was appointed First Secretary (from 1976 titled general secretary) of the Central Committee on 3 May 1971 after the Soviet leadership forced Ulbricht to step aside "for health reasons".

After also succeeding Ulbricht as Chairman of the National Defence Council in 1971, Honecker was eventually also elected Chairman of the State Council (a post equivalent to that of president) on 29 October 1976. With this, Honecker reached the height of power within East Germany. From there on, he, along with Economic Secretary Günter Mittag and Minister of State Security Erich Mielke, made all key government decisions. Until 1989 the "little strategic clique" composed of these three men was unchallenged as the top level of East Germany's ruling class. Honecker's closest colleague was Joachim Herrmann, the SED's Agitation and Propaganda Secretary. Alongside him, Honecker held daily meetings concerning the party's media representation in which the layout of the party's own newspaper Neues Deutschland, as well as the sequencing of news items in the national news bulletin Aktuelle Kamera, were determined.

Under Honecker's leadership, East Germany adopted a program of "consumer socialism", which resulted in a marked improvement in living standards already the highest among the Eastern bloc countries – though still far behind West Germany. More attention was placed on the availability of consumer goods, and the construction of new housing was accelerated, with Honecker promising to "settle the housing problem as an issue of social relevance". His policies were initially marked by a liberalisation toward culture and art. While 1973 brought the World Festival of Youth and Students to East Berlin, soon dissident artists such as Wolf Biermann were expelled and the Ministry for State Security raised its efforts to suppress political resistance. Honecker remained committed to the expansion of the Inner German border and the " order to fire " policy along it. During his time in the office around 125 East German citizens were killed while trying to reach the West.

After the Federal Republic had secured an agreement with the Soviet Union on cooperation and a policy of non-violence, it became possible to reach a similar agreement with the GDR. The Basic Treaty between East and West Germany in 1972 sought to normalise contacts between the two governments.

East Germany also participated in the Conference on Security and Co-operation in Europe held in Helsinki in 1975, which attempted to improve relations between the West and the Eastern Bloc, and became a full member of the United Nations. These acts of diplomacy were considered Honecker's greatest successes in foreign politics.

Honecker received additional high-profile personal recognitions including honorary doctorates of business administration from East Berlin's Humboldt University in 1976, Tokyo's Nihon University in 1981 and the London School of Economics in 1984 and the Olympic Order from the IOC in 1985. In September 1987, he became the first East German head of state to visit West Germany, where he was received with full state honours by West German Chancellor Helmut Kohl in an act that seemed to confirm West Germany's acceptance of East Germany's existence. During this trip he also journeyed to his birthplace in Saarland, where he held an emotional speech in which he spoke of a day when Germans would no longer be separated by borders. This trip had been planned twice before, including September 1984, but was initially blocked by the Soviet leadership which mistrusted the special East-West German relationship, particularly efforts to expand East Germany's limited independence in the realm of foreign policy.
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