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

Exam code: 2147

Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

The 'Diktat'

The Treaty of Versailles took force on 10th January 1920
Many Germans argued that the Weimar Republic should not have signed the Treaty of Versailles
- They believed that German politicians committed a ‘dolchstoss’ - or a ‘stab in the back’
- The politicians who signed the Treaty of Versailles were called ‘November Criminals’. This was because November was the month the government signed the armistice
- Many Germans felt humiliated and weaker than the rest of Europe
- German people and politicians called the treaty a ‘diktat’
  - German representatives were not allowed to attend the peace talks
  - Germany had to accept the terms of peace otherwise the Allies would take control of the country

What Sections of the Treaty of Versailles Angered the German People?

Area of the treaty	Why did this anger the German people?
The War Guilt Clause	The German public did not think it was fair that they had to take all of the blame for the First World War. Other countries were planning for war in the 1910s
Restrictions on armed forces	The armed forces were a source of pride for the German people. Many Germans felt humiliated and vulnerable to attack. They were bitter that the rest of Europe was not forced to disarm
Reparations	Many Germans believed that the reparations were set too high. Germany had already been financially ruined by the First World War. From 1922, Germany could not pay its reparations bill
Territorial losses	The Treaty of Versailles placed German citizens under the rule of other countries. Many Germans felt that the Allies had taken away their cultural identity

Rise of Extremism: The Kapp Putsch

The Spartacist Revolt in January 1919 came close to overthrowing the new Republic
- The Weimar Republic used the Freikorps to stop the communist uprising
  - The Freikorps was a right-wing group
  - They were armed ex-soldiers who became unemployed after the Treaty of Versailles restricted the German Army
In March 1920, President Ebert planned to disband the Freikorps units in Berlin
5,000 Freikorps members and their leader, Wolfgang Kapp, attempted to overthrow the government in a putsch
Kapp and the Freikorps invited the Kaiser back to govern Germany
- Many of the lower classes would not support the Kaiser returning to Germany
  - They had achieved more rights and freedoms since the Kaiser’s abdication
The workers, with the Weimar government’s encouragement, called for a general strike
- Berlin lost gas, electricity and water supplies
- There was no public transportation
After four days, Kapp left Berlin
The Freikorps continued to cause issues in the Weimar Republic after the Kapp Putsch
- Within the first three years of the Weimar Republic, there were 376 political assassinations
  - In August 1921, two members of the Freikorps shot and killed Matthias Erzberger. Erzberger signed the armistice

Occupation of the Ruhr

In December 1922, France accused Germany of not sending the amount of coal required by the Treaty of Versailles
French and Belgian troops entered the Ruhr in January 1923
- The soldiers seized coal, manufactured products and machinery
Chancellor Cuno urged the coal workers to use passive resistance
- The workers:
  - Went on strike
  - Sabotaged machinery
- The French responded by bringing their own workers into the Ruhr
- The Weimar government could not force the soldiers out of the Ruhr because the Treaty of Versailles:
  - Restricted Germany’s army to 100,000 men
    - The French had 750,000 soldiers
  - Contained terms that legalised France’s actions
- The French occupation of the Ruhr destroyed Germany’s economy because the Weimar government:
  - Insisted on paying wages to the striking workers
  - Began importing coal from other countries to meet demand
  - Could not provide factories with enough coal
    - Germans experienced shortages in everyday items. This increased the prices of these products

Hyperinflation, 1923

The term inflation means the increase in prices
- Inflation happens in an economy over time
  - For example, a loaf of bread in January 1971 cost 10p. The average price of bread in January 2023 was £1.06
- Inflation is measured as a percentage
Hyperinflation is when prices rise rapidly and become out of control
- Wages struggle to match the cost of living
In extreme cases, a country’s currency loses its monetary value

To pay the striking Ruhr workers and purchase coal, the Weimar government decided to print more money
- In 1923, there were 300 paper mills and 2,000 printers whose sole purpose was to print currency
- The decision to print an excessive amount of money caused the hyperinflation crisis
By November 1923, the German currency (the mark) had become worthless
- Some workers received pay twice a day so they could purchase essential goods before their wages became worthless
- People filled wheelbarrows full of money to buy a loaf of bread

Causes and Consequences of Hyperinflation

A cause-and-consequence diagram explaining hyperinflation in Weimar Germany.

Centre box:

"Hyperinflation" in a central red box, with arrows pointing to and from it.

Causes on the left (in green):

The Treaty of Versailles

France’s invasion of the Ruhr

Printing more money

These causes are linked with arrows pointing towards the "Hyperinflation" box.

Consequences on the right (in blue):

Unemployment

Loss of savings and pensions

Debts from loans decreased

Increased support in extremist parties

These consequences are linked with arrows pointing outward from the "Hyperinflation" box. — A diagram illustrating the causes and consequences of hyperinflation

Worked example

Study Source A. How useful is this source to a historian studying the Treaty of Versailles? Explain your answer using details from the source and your knowledge

7 marks

Source A: A satirical cartoon by German cartoonist Erich Schilling in 1921 entitled “The monstrosity of the Paris Conference”. The bottom caption reads “If only she didn't crush her parents!”

Partial answer:

Source A is useful to a historian studying the Treaty of Versailles (1). This is because it shows a typical view of how the German public felt about the Treaty. The cartoonist, Erich Schilling, the drew the Treaty of Versailles as a monster on top of skulls (1). The German public believed that the 132 billion marks reparations bill set in the treaty would ruin their economy and, as a result, their lives (1). The occupation of the Ruhr and the resulting hyperinflation crisis of 1923 proved that Schilling was correct in being afraid of the treaty’s ability to destroy people’s lives (1).

Exam tip

Exam tip

All sources are, in some way, useful for a historian. To achieve full marks for this question, you need to comment on the nature, origin and purpose of the source

Nature - The source is a cartoon produced in 1921. Cartoons are useful for understanding the zeitgeist, or the mood of the time. A limitation of cartoons as historical sources is that events are often exaggerated
Origin - The cartoonist is from Germany. He is likely to have a negative view of the Treaty of Versailles. Therefore, the source is typical of the period
Purpose - Cartoons are often drawn to entertain or to provide an opinion. Consider key events in Germany before 1921 that would motivate Schilling to produce this image

This method of source analysis ensures you are using details from the source and your own knowledge in your answer.

Rise of Extremism: The Munich Putsch

Causes of the Munich Putsch
Long-term	Mid-term	Short-term
The people were angry with the Weimar government from its beginnings. The Treaty of Versailles in 1919 was a ‘dolchstoss’ for many Germans	Mussolini, the fascist leader of Italy, inspired Hitler. Mussolini led his successful ‘March on Rome’ in 1922. He implemented a putsch using his paramilitary force	The French invasion of the Ruhr caused many shortages of goods in Germany
From 1920, the NSDAP was growing in popularity in Munich and Bavaria		The hyperinflation crisis reached its worst state towards the end of 1923. People resented the Weimar government for how they handled the crisis

In November 1923, Hitler decided that the Nazi Party was ready to take control of Germany
- The putsch relied upon the support of Kahr, Seisser and Lossow
  - These were key officials in Bavaria
- Hitler knew that, if he established control of Bavaria, it would be easier for him to take over Berlin