In early February 1990, the Modrow government's proposal for a unified, neutral German state was rejected by Chancellor Kohl, who affirmed that a unified Germany must be a member of NATO. Finally, on 18 March, the first free elections were held in East Germany, and a government led by Lothar de Maizière (CDU) was formed under a policy of expeditious unification with West Germany. The freely elected representatives of the "Volkskammer" held their first session on 5 April, and East Germany peacefully evolved from a communist to a democratically elected government. Free and secret communal (local) elections were held in the GDR on 6 May, and the CDU again won most of the available seats. On 1 July, the two German states entered into an economic and monetary union.