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The Impact of the Treaty of Versailles. The Treaty of Versailles was the Peace Settlement between the Allies and Germany at the end of the First World War. The German authorities had little choice but to accept the terms of the Treaty presented by 'the Big Three'.This section looks at some of the implications of the terms of the Treaty of Versailles.he financial impact of the Treaty. The Treaty of Versailles blamed Germany for the First World War. As a result of this Germany was also held accountable for the cost of the war and the Treaty dictated that compensation would have to be paid to the Allies.
As a result, by 1919 Germany was no longer the second most economically advanced nation in the world. The immediate economic consequences of the terms of the Treaty of Versailles were a significant concern and added to Germanyâs humiliation. Under the terms of the treaty Germany had to pay huge sums in reparations.In 1921, this amount was set at Â£6.6 billion; a sum that Germany could not pay. The Treaty of Versailles ordered Germany to disband most of its armed forces, leading to high levels of unemployment. 2  Germany had to pay Â£6,600 million to the Allies; a price many felt was too high a price to pay. 3  Germany lost control of important industrial resources in the Ruhr Valley.