Impact of the Treaty of Versailles on Germany

What was the impact of the Treaty of Versailles on Germany?

The Treaty of Versailles had ongoing effects on Germany's political and economic stability.

What was the political impact of the Treaty of Versailles on Germany?

There were 8 important political effects of the Treaty of Versailles on Germany.

• ❖ The leaders of Germany's new Weimar Republic were clearly unhappy about signing the Treaty of Versailles. They had no choice, but it meant the Weimar government was weakened from the beginning.
• ❖ With Allied troops occupying Germany, new German leader Friedrich Ebert had no choice but to sign the treaty.
• ❖ Germans took signing the treaty to mean the Weimar Republic agreed with all its terms. This undermined the government's authority and encouraged several political groups to try and overthrow it.
• ❖ Right-wing politicians supported attempts to overthrow the government, such as the Kapp Putsch in 1920.
• ❖ Weimar politicians, such as foreign minister Walter Rathenau, were assassinated by right-wing terrorists.
• ❖ Left-wing radicals led rebellions and uprisings across Germany, such as the Spartacist uprising in 1919.
• ❖ Many ex-soldiers joined the Freikorps, an anti-communist vigilante group which was involved in the Kapp Putsch, a right-wing uprising in 1920. This was only defeated by workers' strikes.
• ❖ In the long term, the Treaty of Versailles led to the rise of the Nazis' extremist policies as it created bitterness among the German people. The Nazis were able to tap into this.

How much of its economy did Germany lose as a result of the Treaty of Versailles settlement?

There were 4 significant economic losses to the German economy.

• ❖ 16% of its coal production.
• ❖ 48% of its iron production.
• ❖ 15% of its agricultural produce.
• ❖ 10% of its manufacturing.

What was the economic impact of the Treaty of Versailles on Germany?

There were 10 important ways the Treaty of Versailles impacted the German economy.

• ❖ The reparations amount for Germany was set in 1921 at £6.6 billion. Germany said it couldn't afford this.
• ❖ Germany paid the first instalment in 1921, but claimed to be unable to pay in 1922.
• ❖ This resulted in the French invasion of the Ruhr and contributed to hyperinflation in 1923.
• ❖ In January 1923, 80,000 French and Belgian troops marched into the Ruhr, an industrial region of Germany, and began to confiscate goods. They sent these back to France as payment of the debts.
• ❖ Unable to fight off the French troops with a limited army, the Weimar Republic instructed workers to go on strike, and printed money to support them.
• ❖ This led to hyperinflation and the German currency became worthless.
• ❖ Hyperinflation in 1923 made money worthless and prices for goods shot up. For example, the price of a loaf of bread rose to 100 billion marks as the currency completely collapsed.
• ❖ Meanwhile, violence broke out frequently between French troops and German workers. Over 130 Germans were killed and 100,000 were deported from the region.
• ❖ The situation was solved in 1924 when Gustav Stresemann, the newly appointed chancellor and foreign minister, introduced a new currency called the Rentenmark. He also agreed loans from America, called the Dawes Plan, to pay the reparations.
• ❖ Although Germany recovered from hyperinflation, it left the Germans even more bitter and resentful about the Treaty of Versailles, which they believed was to blame.