The treaty of VersaillesThe Treaty of Versailles was the peace treaty after World War I in 1919. It forced Germany to disarm, make substantial territorial concessions, and pay reparations to certain countries that had formed the Entente powers isolated Germany internationally and rendered it militarily virtually powerless. Therefore the government worked hard to expurgate the Treaty in order to reinstall Germany as a European major power. However this was only possible through approaching other European countries.
Treaty of Rapallo
As the Soviet Union was similarly classified as a loser of the First World War the country was isolated within Europe similar to Germany.
The Treaty of RapalloThe Treaty of Rapallo between Germany and Russia renounced all territorial and financial claims against the other in 1922 promoted the convergence between both countries that were initially excluded from diplomatic actions, thus the Treaty enabled Germany to communicate with the Soviet Union. Simultaneously the improved feedstock supplies led to economic advantages. The amicable negotiations resulted in the Treaty of Berlin in 1926The Treaty of Berlin (1926) pledged neutrality in the event of an attack on the other by a third party for the next five years in which the two states assured each other neutrality in case of an outbreak of war1.
Due to the high reparations and recession the Weimar republic was gravely in debt. In 1924 the USA began to stabilise the German economy with their Dawes planThe Dawes Plan (1924) was the American support to compromise and collect war reparations debt from Germany. The years between 1924 and 1929 are thus known as the “Golden 20s”. Germany recovered from recession and regained its international recognition. However the involvement of the USA in rebuilding the economy made Germany distinctly more dependent on the American stock-exchange. Loans were closely linked to the economic situation in the USA, this being the reason for the impact the financial crashThe financial crash of 1929 was called Black Friday and caused the Great Depression in Germany and Europe in New York in 1929 had on Germany.
Consequently the Dawes plan is one reason for the Depression of 19292.
The improvement of Germany’s diplomatic relations internationally that took place in the 1920s is mainly due to achievement of the diplomat Gustav StresemannGustav Stresemann's most notable achievement was reconciliation between Germany and France. In the Locarno pactThe Locarno Treaties improved western European diplomatic climate of 1924–1930 and caused Germany's admission to the League of Nations of 1925 Germany and France agreed to accept the borders in the west- This lay the corner stone for a European policy of peace as Germany was later on included in the League of NationsThe League of Nations (1920 - 1946) was an European organization that was founded after World War I. Its principal mission was to maintain world peace in 1926. Even though Stresemann’s efforts in foreign affairs were opposed domestically he improved Germany’s international standing and facilitated a European policy of peace3.