Neutral united Germany after WWII

Just before Germany signed the EVG and Detuschland treaties on 26.03.1952 the Sovietunion offered Germany the unification if they accepted the loss of the eastern territories and would remain neutral.
So what would have happened if Germany accepted this proposal? Let's say Stalin was honest and the unification is done.
- Would both emerging blocks support the neutral Germany financially (to prevent them becoming more neutral to one of the blocks than to the other)?
- Would the isolated Germany stagnate or prosper?
- And even if this could work, if one of the blocks wants to start WWIII how much would be German neutrality hinder their troops to still use Germany as one of the main battlegrounds?
 
I don't think it's really a question of what Germany would want considering at the time West Germany was still more or less occupied and not really in any position to go against what the Western Allies wanted.
 
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Cook

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I don't think it's really a question fo what Germany would want considering at the time West Germany was still more or less occupied and not really in any position to go against what the Western Allies wanted.
Are you aware that Austria was under Four Power occupation at the same time and two years later was independent and neutral?
 
Are you aware that Austria was under Four Power occupation at the same time and two years later was independent and neutral?

Which had to do with an agreement between the West and Soviets in which the Soviets relinquished their occupation zone in return for Austria not joining NATO rather than splitting it in two like Germany.

I'd also point out Austria and Germany are no way near comparable in position and importance either, West Germany bordered multiple Western Allies while Austria bordered two former Axis member and a bunch of Eastern Bloc countries.
 
As Iori has put it, the main issue is to get the Western Allies to agree to that (well, Adenauer as also more than content with West Germany in a western alliance system, too but if the allied council would have decided for unifying Germany he couldn't have done too much)

- Would both emerging blocks support the neutral Germany financially
Probably (at least to get the german economy up to get some reparations payments later and with interest), though not as much as OTL anyways and where the Soviets would get enough funds to compete with western financial support is quite a question. Unless of course they'd go with Morgenthau (which would lead to just another bag full of problems)
- And even if this could work, if one of the blocks wants to start WWIII how much would be German neutrality hinder their troops to still use Germany as one of the main battlegrounds?
That is one of the main problems, if not The Problem.
If the neutralized Germany would also be demilitarized there would be no way to stop either side to 'demand' transit rights in case of a conflict. And a fully rearmed Germany (to protect their neutrality if need be) outside of either alliance system... no, neither side and probably the Germans themselves wouldn't have wanted that (there was already some fuzz about the OTL rearmament)
 
In the long run, it probably would have done the world a lot of good. A major buffer between the east bloc and west bloc means a warmer cold war. Both sides can tone down their paranoia, and spend less on their militaries. A massive neutral bloc running from Sweden and Finland through Germany and Austria to Yogoslavia would be interesting.

Would this aid Czechoslovakia in Prague Spring, if a similar movement happened? Would/could the west have demanded Czechia be part of this neutral bloc in exchange for the much larger BDR?

Would the nonaligned movement actually be nonaligned, instead of proSoviet.

Lots of ramifications to play with.
 
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