This bloc of nations was set up by the Soviets in opposition to NATO in the capitalist West in what became the Cold War .Since the end of the War, the Soviets together with like-minded East Germans created a new Soviet-style regime in the Soviet Zone and later the GDR, on a centrally planned socialist economic model with nationalized means of production, and with repressive police state institutions, under party dictatorship of the SED similar to the party dictatorship of the Soviet Communist Party in the USSR.