The Treaty of Versailles

Paper Summary:

This paper examines the effect of the Treaty of Versailles of 1919 on European history during the interwar period. It looks at how the territorial, financial and security framework and arrangements created by and under the treaty ultimately (by the late 1930s) failed to keep the peace in Europe. It evaluates how the terms of the treaty and the manner it was imposed on Germany contributed to the continuing instability of Central and Eastern Europe and to revanchist sentiment in Germany.

Outline
Basic Facts
Treaty Terms: Motivations and Consequences
Impact of the Treaty's Economic Provisions
Overall Assessment of the Treaty's Impact
Conclusion

From the Paper:

"The reparations clause of the Treaty helped to undermine the political and economic stability of Germany and other nations in Central and Eastern Europe. The original amount of reparations demanded by the Allies ($200 billion by France) and ($120 billion by Britain) far exceeded postwar Germany's capacity to pay (Bailey 245). The combined burden of the initial reparations payments exacted from Germany in the early 1920s ($5 billion in gold), the dislocation to the German economy caused by the revolutionary situation at home and the adverse effects of the French occupation of the Ruhr led to a devastating devaluation of the German mark and hyperinflation."

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