How serious is the consequences of the Versailles treaty?

1. Economic Impacts of Versailles Treaty How serious is the impact? Sith

2. The Versailles Treaty dealt mainly with reparation only. It didn’t solved allied debt issues: -US didn’t canceled its Allies loan, so they demanded money from Germany to recover their economies

3. 2 major events followed: -Ruhr Crisis: France and Belgium seized German’s industry to make her pay reparation. -Dawes Plan: USA loaned money to Germany to pay Allied the reparation.

4. Keynes condemned Versailles because it will hurt Germany and Europe economy. Sympathies grow in USA and Britain to revise the treaty. UK and France come into conflict because France want harsh punishments on Germany.

5. -No real trading cooperation exist between countries. When recession come, countries tried to solve problems by themselves. They increased tariff and stop exporting goods. Economic recoveries become difficult.