With the heightened anxiety of the Cold War, Stalin's proposal was met with intense suspicion in the FRG, which instead signed the European Defence Community Treaty that month.
[8] Meanwhile, food prices rose as a result of both the state's collectivization policy – 40% of the wealthier farmers in the GDR fled to the West, leaving over 750,000 ha (1,900,000 acres; 2,900 sq mi) of otherwise productive land lying fallow – and a poor harvest in 1952.
[8] To ease economic strain on the state caused by the "construction of socialism", the Politburo decided to increase work quotas on a compulsory basis by 10% across all state-owned factories: that is, workers now had to produce 10% more for the same wage.
[14] By 2 June, the Soviet Union leadership issued an order "On Measures to Improve the Health of the Political Situation in the GDR", in which the SED's policy of accelerated construction of socialism was roundly criticised.
The huge flight of all professions and backgrounds from East Germany to the West had created "a serious threat to the political stability of the German Democratic Republic."
Although most Politburo members felt the announcement of the "New Course" required careful preparation within the party and the population at large, Soviet High Commissioner for Germany Vladimir Semyonov insisted it be implemented right away.
There was now going to be a shift towards investment in consumer goods; the pressures on small private enterprise would end; forced collectivisation would cease; and policies against religious activity would be discontinued.
At 9:00 AM on the morning of 16 June, 300 workers from the construction sites at "Hospital Friedrichshain" and "Stalinallee Block 40" in East Berlin went on strike and marched on the Free German Trade Union Federation (FDGB) headquarters on Wallstrasse, then to the city centre, hoisting banners and demanding a reinstatement of the old work quotas.
Only Heavy Industry Minister Fritz Selbmann and Professor Robert Havemann, president of the GDR Peace Council, emerged from the building.
However, by the time an SED functionary reached the House of Ministries to give the workers the news, the protestors' agenda had expanded well beyond the issue of work increases.
In the afternoon, there were broadcasts about the change in demonstrator demands from the repeal of the higher work quotas and price cuts to shouts of "We want free elections".
RIAS's political director, Gordon Ewing, decided that the station could not directly lend itself to being a mouthpiece to the workers; in his view, such a move could start a war.
Nonetheless, at 7.30 PM, RIAS reported that a delegation of construction workers had submitted a resolution for publication, stating that the strikers, having proved by their actions that "they were able to force the government to accept their justified demands", would "make use of their power at any time" if their demands for lower work quotas, price cuts, free elections and amnesty for all demonstrators were not fulfilled.
En route, they encountered GDR security forces – regular and Kasernierte Volkspolizei ('Barracked People's Police', KVP) units – who, apparently lacking instructions, did not initially intervene.
On improvised banners and posters, the demonstrators again demanded the reinstatement of the old work quotas, but also price decreases, the release of fellow protestors arrested the day before, even free and fair all-German elections.
[citation needed] By 9:00 AM, 25,000 people had gathered in front of the House of Ministries, and tens of thousands more were en route to Leipziger Strasse or in Potsdamer Platz.
Fighting between the Soviet Army (and later GDR police) and the demonstrators persisted into the afternoon and night – with, in some cases, tanks and troops firing directly into the crowds.
The main centres of protest included the industrial region around Halle, Merseburg, and Bitterfeld, as well as middle-size towns like Jena, Görlitz, and Brandenburg.
[26] Although the demands made by protesters could be political – e.g. the dissolution of the East German government and organisation of free elections – they were often simply of a local and economic character.
They were about issues like bread shortages, unpopular night shifts, even the number of toilets in the workplace and the fact that tea was being served in rusty urns.
Grotewohl was "rewarded" with the post of Prime Minister, but within a few years the SED had significantly reduced his powers and turned the office into a mostly ceremonial role.
Minister of State Security Wilhelm Zaisser conceded that the entire Politburo was responsible for the "accelerated construction of socialism" and its disastrous fallout, but added that leaving Ulbricht as leader "would be opposed [as] catastrophic for the New Course."
By the end of the meeting, just two Politburo members supported Ulbricht's continued leadership: Free German Youth League chief Erich Honecker and Party Control Commission Chairman Hermann Matern.
In a self-serving report which sought to play down the culpability of the Soviet Commission in East Berlin and emphasise the responsibility of Ulbricht for the uprising, they concluded – inter alia – that Ulbricht's position as General Secretary of the SED should be terminated, and that the party would move towards collective leadership, in addition to other far-reaching structural political changes in East Berlin.
On 2 July, when a commission met there to discuss proposals for reform in East Germany, the decision was made to shelve the far-reaching and politically sensitive changes.
[citation needed] In late July, Ulbricht, ever more certain of his continued backing in Moscow, expelled his main opponents, Zaisser, Hernstadt and Ackermann, from the Politburo, further strengthening his position.
The "New Course" policies – increased investment in consumer goods, housing and price and travel subventions – led to an improvement in living standards overall but failed to achieve an immediate end to the discontent that had been growing over the past year.
The extension of the Unter den Linden boulevard to the west of the Brandenburg Gate, called Charlottenburger Chaussee, was renamed Straße des 17.
[40] West German band Alphaville mention "the seventeenth of June", without referencing the year, in their 1984 song "Summer in Berlin", from their Forever Young album.
"[citation needed] The 1966 Günter Grass play The Plebeians Rehearse the Uprising depicts Brecht preparing a production of Shakespeare's Coriolanus against the background of the events of 1953.