So not 1989 (instead 1983), but the book I’m working on (Der Kalterkrieg) is an alt history Cold War between the US and Nazi Germany.
Socially it’s both hyperconservative and collective-oriented, with people highly indoctrinated to put the “Volk” and Reich first.
Economically, it’s undergone massive reforms to fix the serious behind the scenes problems with the Reich’s economy, enduring a few recessions as a response. It’s somewhat similar economically to modern China: massive corporations partially owned and directed by the state command the economy and the public sector takes up more than 40% of the total pie.
Politically, it’s a one party totalitarian state leading an alliance of other one party totalitarian states. They support fascist and national socialist movements in other countries (for instance in Africa and the Middle East), ostensibly to counter the efforts of “Judeo-Bolshevik cabal that secretly runs the mongrel United States”.
Demographically, there’s four tiers:
-Germanics: proper Aryans who are culturally German, they have full rights and are top dogs.
-Non-Germanic Aryans: people considered Aryan racially, but not German culturally. These are your Dutch, Norwegians, Swedes, etc. Their rights are equal to Germanics, but they don’t have as much political or social influence.
-Non-Aryans: this includes “Honorary Aryan” races like Croats and Finns as well as groups like Non-German speaking Swiss or French speakers from Belgium. Second class citizens if they live within the Reich.
-Reformed Slavs: the population of Slavs “allowed to stay” in the Reich (really they figured Generalplan Ost couldn’t really exterminate everyone and it would be economically bad even if they did so). Only populate eastern regions and are banned from entering the Reich properly. De facto serfs and menial laborers with basically no rights.
How does the rest of the continent get along with them? Germany leads the Nuremberg Pact, a military alliance of every country in Europe outside of the British Isles. However, there’s a growing political split German National Socialism and Italian Fascism, one the United States has subtlety been trying to exploit.