The start of the century has been good to Germany. German athletes did well at their Olympics debut in Xi'an, and German scientists made great advances, particularly in the field of physics.
German physicist Max Planck, pioneer of quantum mechanics
The German government has been quick to recognise the genius of its scientists, providing large grants to support universities and other research institutions around the country. Germany recognises that current industrial practices are still inefficient and labour-intensive, and new technologies are important to modernise industry and ensure that Germany does not fall behind the rest of the world.
Chancellor August Bebel new pet project is the electrification of the country. Electricity has long been hailed as the "key to the future" by prominient industrialists and statesmen. Most major cities now enjoy electric lights and a growing range of electric appliances; the challenge is now to expand the grid to the smaller towns and the countryside. The Slavic genius Nikola Tesla has been instrumental in this effort; employed by the national German electricity company, he has designed a national electricity grid based on alternative current.
Slavic scientist Nikola Tesla, pioneer of AC generation, relaxing in his lab near Vienna
The military was not neglected in the modernisation drive. The Navy is the latest beneficiary of Germany's economic prosperity, with the addition of more modern, powerful ships to the fleet; the so-called "Schlachtschiff", or Battleship.
Germany watched nervously as events in Russia came to a head. To the cheers of German communists, the Russian imperial government fell and was replaced by the "worker's state" of the Soviet Union. However, the civil war soon escalated into a wider war, as a coalition led by France declared war on the fledging communist state. Germany was in an unenviable position in between the warring parties as the controller of the Kattegat, the strait that connects the North Sea to the Baltic Sea, the gateway to the Russian capital. Influenced by lobbying from both the communists, who don't want to see the Soviet government fall, and the nationalists, who fears "Accordian encirclement", the government decided to close the strait to anti-Soviet coalition forces. Anxious to maintain its neutrality, the authorities closed the strait to the Soviets, too. However, all neutral nations are still allowed to freely access the strait.
The newly-modernised German Navy in the Baltic Sea