What was the impact of the Treaty on Germany?

• Economic Impact

• Under Article 231 of the Treaty of Versailles, the Weimar Government was forced to sign the War Guilt Clause, accepting responsibility for causing the War. This meant that Germany had to accept high reparations that were imposed upon them.  

• When the Weimar Government signed the Treaty, the sum of reparations had not been specified. Therefore, the signing of the War Guilt Clause is often described as the Weimar Government signing a 'blank cheque'. 

• In 1921, the Reparations Commission, consisting of representatives of The Allies, set the total amount at 132 billion gold marks (approximately $33 billion USD or £6.6 billion GBP at the time).

• Germany struggled to pay these reparations as the economy was devastated following the War. This led to French and Belgian forces occupying the Ruhr and seizing goods in place of reparations. The strikes which ensued led to the German economy entering hyperinflation as the value of the currency plummeted to the value of 4,210,500,000,000 German marks to the US dollar.

• Territorial Impact

• Germany lost a significant amount of territory under the Treaty of Versailles. Namely...

  • Alsace-Lorraine, which Germany had won in the Franco-Prussian War (ending 1871), was returned to France.

  • Eupen-Malmedy, which was ceded to Belgium.

  • North Schleswig, which Germany (Prussia) had won in the Schleswig War of 1864, was returned to Denmark.

  • West Prussia, which was ceded to Poland, providing them with access to the sea.

  • the Saar Basin, which was placed under the administration of the League of Nations– with the coal mined there being given to France as reparations.

  • Danzig, which became a free port city under the administrative control of the League of Nations. 

• These territorial losses severely reduced Germany's size and hit the sense of national pride, contributing to the widespread resentment towards the Treaty of Versailles within Germany. It also meant that many Germans were now in foreign countries and under the administration of foreign governments, such as Poland. 

• The loss of key industrial areas, such as the Saar Basin, also hit the economy hard. 

• They were unhappy that Germany was not allowed to unite with Austria, which shared the same mother tongue. Hitler would later use this to justify and achieve the Anschluss with Austria in 1938. 

• Political Impact

• The terms of the Treaty of Versailles proved to be deeply unpopular amongst Germans and led to political instability. 

• There were a number of uprisings and attempted coups in response to the Treaty, including:

  • The Spartacist Uprising (1919), led by left-wing groups trying to create a communist government amidst instability.

  • The Kapp Putsch (1920), led by right-wing forces seeking to overthrow the Weimar government and reinstate the Kaiser's rule.

  • The Munich Putsch (1923), led by the Nazi Party aiming to seize power in Bavaria and overthrow the Weimar government.

• The Treaty of Versailles gave rise to the popularity of extremist parties who promised to resolve the problems created by the Treaty of Versailles and reverse its terms.

• Military Impact

• The treaty imposed severe restrictions on the size and capabilities of the German military. The army was limited to 100,000 troops, 6 battleships and no submarines. Additionally, Germany faced restrictions on the artilleries it could possess. These restrictions weakened Germany's ability to defend itself and fueled resentment among military personnel and nationalist factions.

• The terms which required a reduction in armaments brought a loss of pride and much resentment by the people of Germany. 

• Germans felt uneasy that the size of their army was too small to defend against potential invasions. They were especially afraid as the French Army was approximately 6/7 times larger. 

The treaty's harsh terms meant that Germans felt humiliated as they had lost their national pride through a Treaty they were forced to sign, without any representatives of Germany (or any of the other Central Powers) being invited to the Paris Peace Conference to negotiate the terms of this 'diktat'/'dictated peace'. This fueled nationalist sentiments for revenge and incited support for extremist movements, such as Nazism, which exploited these grievances to gain support in later years.