In all likelihood, this Germany would be allowed to reunify during the mid-late 1950s, pending its acceptance of demilitarization and neutrality between the blocks. The USSR always showed they preferred a united neutreal demilitarized Germany to having most of it with NATO and EU and them holding rumo GDR. They would likely become a big Sweden or Switzerland, economically and poltically giving her allegiance to the West, but militarly neutral and officially outside Western supranational organization. Politically Germany shall not be that much different from OTL.
European and global economy shall benefit significantly from having a united Greater Germany with a capitalist socioeconomic structure, and the Eastern block shall be comparetivel weaker. However, NATO shall be signfiicantly weaker without GFR, and the internal dynamics of both NATO and EU shall be significantly different. In sum, the Western block shall be much stronger, economically, and significantly weaker, militarly. The revers appleis for the Communist block.
Of course, there is still the possibily that Germany undergoes division when the Western occupation zones coalesce in a federal republic, and the Soviets set up theirs as a communist republic. Therefore, it would be most interesting to see what the various Western and Soviet occupation zones are. What does the USSR holds ? Prussia ? Saxony ? Austria ?
Anyway, this has the invaluable benefit that Germany and Austria shall strick together after the inevitable downfall of Soviet Communism and the equally reunification of Germany. Any TL that fulfills Grossdeutchsland gets my blessing.


