The Soviet occupation zone in Germany (German: Sowjetische Besatzungszone (SBZ) or Ostzone, lit.

On 7 October 1949 the German Democratic Republic (GDR), commonly referred to in English as East Germany, was established in the Soviet occupation zone.

The SMAD allowed four political parties to develop, though they were all required to work together under an alliance known as the "Democratic Bloc" (later the National Front).

After Prussia was dissolved by the Allied powers in 1947, the area was divided between the German states (Länder) of Brandenburg, Mecklenburg, Saxony, Saxony-Anhalt and Thuringia.

The West's lack of interest in this proposal helped to cement the Soviet Zone's identity as the GDR for the next four decades.