AP European History
Economic reparations refer to compensation paid by a country to another nation or group for damages or losses suffered, often as a result of war or conflict. During the interwar period, the focus on reparations emerged primarily from World War I, where the Treaty of Versailles imposed heavy financial burdens on Germany, intending to hold it accountable for the war. This financial obligation not only strained Germany's economy but also created tensions among European nations, impacting international relations and economic stability in the region.