The Weimar Republic was established in Germany after World War 1 and faced significant challenges, including economic devastation from war reparations imposed by the Treaty of Versailles. The early years of the Weimar Republic saw political instability from communist and nationalist groups as well as hyperinflation resulting from France occupying the Ruhr Valley. Under the leadership of Stresemann in the later years, Germany's economy and international standing improved through agreements like the Dawes Plan and Locarno Treaties, though unemployment and poverty remained problems.