The word Kleinstaaterei (German: [ˌklaɪnʃtaːtəˈʁaɪ], "small-state-ery") is a pejorative term coined in the early nineteenth century to denote the territorial fragmentation of Germany.
As an illustration of Germany's territorial fragmentation, young Wilhelm von Humboldt and friends, in order to observe the revolutionary events unfolding in Paris in the summer of 1789, traveled from Brunswick, capital of Brunswick-Wolfenbüttel, to France, entering and exiting six duchies, four bishoprics and one free imperial city (Aachen) before reaching the French border.
[6][7][8][9] The political fragmentation of the Empire was the single most salient characteristic of German history throughout the early modern period; it underlay and conditioned development in all areas of public life.
The Habsburg family, however pursued its Grand Strategy policy, that focused on long-term dynastic reign at the center of a vast, multi-layered and multi-ethnic realm against Bourbon France and the Ottoman Empire.
[14] In the 17th century the Kingdom of Prussia emerged as the second dominant power, which also incorporated substantial non-German territories and lands beyond the borders of the empire, while excluding major parts of Germany proper.
[5][15] Apart from these two states, the Holy Roman Empire consisted of hundreds of small, German-speaking principalities, most of which derived from successive dynastic splits (feudal fragmentation), sometimes reflected in compound names such as Saxe-Coburg; some of these were united through royal marriages, although the resulting entity was often not a contiguous territory.
The call for a unified nation-state was one of the central demands of the Revolutions of 1848, but the ruling dynasties of the smaller German states and of multinational Austria and Prussia managed to resist nationalist efforts at unification.
A notable figure opposed to national unification was German writer and statesman Johann Wolfgang von Goethe, writing: "Frankfurt, Bremen, Hamburg, Lübeck are large and brilliant, and their impact on the prosperity of Germany is incalculable.
Internally in the nation some of these fragmented boundaries and small political units continued to exist until the modern States of Germany were established in the Federal Republic after World War II.
Varying systems of weights and measures, different currencies and numerous tariffs impeded trade and investment, although the creation of the German Customs Union had begun to lift these barriers.