Post-WWI Europe: Treaties, Economic Shifts, and Rise of Dictatorships
The Peace of Paris and its Aftermath
What was the Peace of Paris?
The Peace of Paris refers to the set of treaties signed between the victorious Allied powers and the defeated Central powers after World War I. The most significant of these was the Treaty of Versailles.
Objectives of the Peace of Paris
The primary objectives were:
- To prevent the resurgence of Germany as a major power.
- To achieve a balance of power among the winning nations.
- To keep Russia isolated due to the Bolshevik Revolution.
Empires that Ceased to Exist
The following empires dissolved:
- German Empire
- Austro-Hungarian Empire
- Ottoman Empire
Isolation of Russia
To isolate Russia, the surrounding states of Poland and Romania were strengthened.
Stabilization of the Balkans
A new country, Yugoslavia, was created to stabilize the Balkans.
Punishment of Germany under the Treaty of Versailles
Germany lost all its colonies and significant European territories. The Saarland was placed under French administration for 15 years.
Germany’s “Revenge” Sentiment
Germany was forced to sign the treaty and did not accept the imposition of war reparations, fostering a desire for revenge.
The League of Nations
Founded in 1920, the League of Nations aimed to bring major countries together to resolve international problems peacefully.
Economic and Political Shifts
Shift in Economic Hegemony
Economic power shifted from Great Britain to the United States, with New York becoming the world’s new financial center.
Germany’s Post-War Situation
Germany faced a dire economic situation, burdened by war reparations, hyperinflation, and currency devaluation.
Post-1923 Recovery
After 1923, European countries experienced growth in production, lower unemployment, and improved living standards.
New Forms of Government
New countries predominantly adopted democratic regimes.
Problems in the New Countries
These countries faced significant social tensions, with worker and peasant uprisings in some areas.
Dictatorial Regimes
A dictatorial regime is a form of government where absolute power is concentrated in a single individual. These regimes were imposed in Italy, Spain, Hungary, Poland, Portugal, Greece, and Yugoslavia.
Franco-German Tensions
Tensions between France and Germany were severe. Germany’s economic crisis hindered its ability to pay war reparations to France, which, in turn, struggled to repay its debts to the U.S.
Occupation of the Ruhr
In 1923, the French army occupied the Ruhr, Germany’s richest industrial region, known for coal and steel production.
The Dawes Plan
The Dawes Plan, initiated by the U.S., provided Germany with a loan to pay reparations to the Allies, enabling them to repay their debts to the U.S.
Treaty of Locarno
The Treaty of Locarno saw Germany acknowledge its borders. The demilitarized zone came under Italian and British control, and Germany was admitted into the League of Nations.
The Great Depression and its Consequences
Causes of the Great Depression
The main causes were:
- Overproduction: Post-war, traditional economies resumed their usual production, leading to a surplus of goods.
- Speculation: The U.S. economy relied heavily on speculation, with benefits sought through loans, leading to the bankruptcy of many companies.
The Stock Market Crash
On October 24, 1929 (“Black Thursday”), a massive sell-off of shares occurred, causing the stock market to crash, ruining investors and companies.
Consequences of the Crisis
The crisis led to a significant increase in unemployment, reduced consumption, and the collapse of many companies.
Global Spread of the Crisis
The crisis spread globally because:
- The U.S. reduced its imports.
- U.S. banks began to repatriate capital.
The New Deal Program
The New Deal, created by President Roosevelt, sought greater state intervention in the U.S. economy.
Rise of Extremist Tendencies
Following the crisis, extremist tendencies gained support:
- Communists, supported by workers and peasants.
- Extreme right-wing parties, supported by the middle and ruling classes.
Expansion of Dictatorships
A new wave of dictatorships expanded to Portugal, Austria, Greece, and Germany.