Adolf Hitler restored the Iron Cross in 1939 as a German decoration (rather than Prussian as in earlier versions), continuing the tradition of issuing it in various grades. Legally it is based on the enactment (Reichsgesetzblatt I S. 1573) of 1 September 1939 Verordnung über die Erneuerung des Eisernen Kreuzes (Regulation of the renewing of the Iron Cross). The Iron Cross of the Second World War was divided into three main series of decorations with an intermediate category, the Knight's Cross, instituted between the lowest, the Iron Cross, and the highest, the Grand Cross. The Knight's Cross replaced the Prussian Pour le Mérite or 'Blue Max'. Hitler did not care for the Pour le Mérite, as it was a Prussian order that could be awarded only to officers. The ribbon of the medal (2nd class and Knight's Cross) was different from the earlier Iron Crosses in that the color red was used in addition to the traditional black and white (black and white were the colours of Prussia, while black, white, and red were the colors of Germany). Hitler also created the War Merit Cross as a replacement for the non-combatant version of the Iron Cross.
(Text from Wikipedia)
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