POD: The Spartacist League successfully overthrows the German government in 1919.
Council Union of Germany
After the Spartacist League took control they immediately established diplomatic relations with the Soviet Union. Lenin was delighted. However, the Spartacists were mostly council communists, which was a very different form of communism than the one being established at the time in the Soviet Union. This would later create a rift between Germany and the Soviet Union. A new constitution was voted in in 1919 setting up a system of worker's councils federated together much like the Soviets had been at the beginning of the Soviet Union. The workers had direct control of the workplace and elected a body of managers that reflected the goals of the workers. The workers also sent representatives to higher levels of administration reaching all the way to the national government. All representatives could be recalled. Elections were held and Karl Liebknecht was chosen as Premier of the Supreme Soviet. The Constitution established a number of rights including free noncommercial speech, and the right to form other parties. Elections are held yearly. In 1925 Liebknecht steps down and Rosa Luxembourg becomes premier. She in turn steps down in 1931 and a 7-term limit becomes a traditional part of German politics.
Break With The Soviets
Vladimir Lenin was disappointed that the Spartacist League had not established itself as a dictatorial vanguard party. In 1920 he wrote Left-Wing Communism: An Infantile Disorder, which scathingly indicted the council communism and Germany. From this point relations between Germany and the Soviet Union soured. Liebknecht writes Vanguard Communism: A Facade For Capitalism in response claiming that the Soviet Union wasn't really communist.
Trotsky Takes Refuge In Germany
Stalin took power after a long power struggle with Leon Trotsky after Lenin's death. In 1927 Trotsky is exiled, and in 1929 he is expelled from the Soviet Union due to Stalin's purges. Trotsky is immediately offered asylum in Germany. There in 1934 he converts to council communism.