Bismarck’s reign after the formation of Germany can be very easily split in to two definite periods, the first being from 1871 to 1878 and was known as his liberal era. During this time the German Chancellor appeared to sympathise with liberal interests, much to the annoyance of the Conservatives, whom felt he was rejecting his roots. Policies promoted fast industrialisation, the Gold standard was adopted and Free trade established, weights and measures uniformed, a nation bank formed, and a commercial and criminal code implemented. Bismarck wanted to see Germany rival the dominance of Great Britain, in order to do this a strong military was needed; industrialisation was the best way to pay for this. Of course this pleased the Industrialists and what followed was economic growth unparalleled in history, the middle classes and thus Liberals viewed the Chancellor as a comrade. However this alliance also led Bismarck in to a conflict with the Roman Catholic Church in 1873 called Kulturkampf.
In 1870 the First Vatican Council had enunciated the doctrine of papal infallibility; this meant that when the Pope spoke on matters of faith and morals, as a spokesman of God he was infallible. This announcement had raised alarm in Liberal and protestant circles, especially in Germany where the Catholic Church had a strong presence. The state saw this as an act of defiance from the Pope as the popularity of Catholicism wavered across Europe, and it was worried that he might try and foster militant Catholicism. Up until 1873 Bismarck had always believed that Church matters were not the concern of the state, however events in 1870s were threatening to bring this to an end.
The first problem presented itself when some Catholics refused the Papal infallibility, Bishops in Germany called for the dissenters to be removed from teaching posts, schools, catholic theologian facilities, and universities. The state replied that it was committed to tolerance and could not interfere, but the Bishops persisted with their demands. Soon the states’ patience wore out with these bishops and suspended subsidies towards them. This immediately caused friction between the state and Church, however this event alone hardly led to Kulturkampf.