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On 28 June 1919 the Weimar Republic was forced, under threat by Allied forces, to

sign the Treaty of Versailles. The one-sided treaty by the victors placed blame
for the entire war upon Germany. Germany was forced to pay 132 billion marks
($31.5 billion, 6.6 billion pounds) in reparations, a prohibitive amount to keep
the German economy from growing. . The heavy reparations, combined with
the devastated economic infrastructure throughout Germany and political tension
under the Weimar Republic, led to an economic depression
In order to pay off monetary reparations, the new German republic printed
tremendous amounts of moneyto disastrous effect. Hyperinflation plagued
Germany between 1921 and 1923. The treaty required Germany to permanently
reduce the size of its army to 100,000 men, and destroy their tanks, air force, and
her fleet of ships
Germany also suffered territorial losses. It saw relatively small amounts of
territory transferred to Denmark, Czechoslovakia, and Belgium, a larger amount to
France and the greatest portion as part of a reestablished Poland. Germany's
overseas colonies were divided between the Allied countries, most notably the
United Kingdom and this caused huge outrage. Nazi propaganda would feed on a
general German view that the treaty was unfairmany Germans never accepted the
treaty as legitimate, and later gave their political support to Adolf Hitler, who was
arguably the first national politician to both speak out and take action against the
treaty's conditions.

The Austrian-Hungarian Empire suffered effects of global depression, but
not as bad as Germany, as it was spared the obligation to pay war
reparations by Allies. When compared to its pre-war borders, what was seen as

Hungary within the Austro-Hungarian Empire, lost nearly 75% of its territory.
The new Hungary was a landlocked state and had no direct access to the
Mediterranean Sea with is many ports. This had a major impact on her
weakened economy as any trade that required to be moved by sea had to pay
tariffs simply to reach a dock to enable it to be shipped abroad. After the war, a
landlocked Hungary faced with numerous tariffs and tolls to pay, produced
only 30% of the grain she had been producing in pre-war Europe. The Treaty of
Trianon costed Hungary an unprecedented 2/3 of her territory . Add to this the loss

of all her seaports, up to 90% of her vast natural resources, industry, railways, and
other infrastructure. Treaty of Trianon ensured that the new Hungary would
have a minimal growth economically. This was, in fact, a deliberate policy. All the
treaties signed by the defeated nations had at their core a desire to ensure that none

of the Central Powers could ever become a threat to European peace again.
Ironically, the unemployment that impacted Hungary in the interwar years was a
primary reason for her association with Nazi Germany.