The Soviet Union wanted to spread Communism in Eastern Europe and create a "buffer zone" of friendly governments as defense against Germany. In 1946, with Eastern Europe under Soviet control and influence, Europe was divided into a West (western democracies and the United States) and East (Soviet Union and Soviet occupied territory).
The aftereffects of World War II were what shaped Cold War Germany. The post-war state of Germany was grim: housing had been destroyed, the economic infrastructure had largely collapsed and inflation was out of control. After its surrender, Germany was divided into four zones: American, French, British, and Soviet. Despite the differences of the Big Three- Stalin, Roosevelt and Churchill- they agreed on some important matters. The old capital of Berlin was also divided into four zones, but Berlin itself remained deep inside of the Soviet zone. The Allies had many reasons for partitioning Germany. Overall, the purpose of dividing land up was to control Germany until a new government could be instated. .
West Germany became a surprisingly stable western democracy. However, East Germany was established as a Stalin-style communist state. The East German government was formed into a centralized and dictatorial regime. Free speech and opinions against the regime were not tolerated, and artistic and intellectual programs were strongly controlled. Stalin wanted to cripple Germany completely to protect the USSR against future threats. Truman did not want to repeat the mistake of the Treaty of Versailles. .
By 1946 Stalin's troops effectively controlled the Baltic States, Finland, Poland, Czechoslovakia, Hungary, Bulgaria, Albania and Romania. With Communist governments established throughout Eastern Europe, Stalin gradually tightened his control in each country. The secret police imprisoned anyone who opposed Communist rule, or might oppose it at a later date. Churchill described the border between the Soviet-controlled countries and the West as an iron curtain.