knowt logo

2.1 Why was their dissatisfaction with the peace settlements of 1919-20?

TREATIES

Brest-Litovsk - March 1918

Germany and Russia

The tsarist regime in Russia was overthrown by the Bolsheviks, led by Vladimir Lenin in Oct 1917. He believed it was essential for Russia to end its involvement in the war, as it was having a devastating effect on the Russian economy and lower classes. Wilson had hoped to convince both Russia to remain in the war and urge Germany to seek a peace settlement, however these hopes were dashed when in March of 1918, Lenin’s new Bolshevik government signed Brest-Litovsk with Germany. The terms of this treaty were extremely harsh, and certainly not in line with Wilson’s 14 points. Russia was to lose Finland, Ukraine, Poland, Estonia, Latvia, Lithuania and Georgia- areas containing most of Russias best farmland, raw materials and heavy industry. In the event, Russia lost 25% of its population, 25% of its industry and 90% of its coal mines.

With Russia now out of the war, Germany no longer had to fight a war on two fronts. They had also gained a large amount of land and resources, both of which allowed Germany to launch a major offensive on the western front.

End of Germany - 1918

Allies launched a large counteroffensive in the summer of 1918. German supply lines had been over- extended during their earlier offensive, and German troops were starved of food and other vital equipment. They were being gradually driven back. Realising the situation was becoming hopeless, German military commanders decided to launch one last major naval battle against the British in the English channel. They hoped this would prevent reinforcements and supplies reaching the allied forces in Europe. Convinced this was a suicide mission for a hopeless cause, the German soldiers mutinied, which sparked a wider revolution within Germany. Wilhelm ll was forced into exile and formally abdicated in November 1918. Germany then became the Weimar Republic.

Versailles - Jan 1919

In January 1919, representatives of the victorious nations met at Versailles, near Paris. The aim of this Paris Peace Conference was to develop a document a settlement that would finally end the First World War and, in the words of the French President Raymond Poincaré, ‘prevent a recurrence of it’. The Germans fully expected a reasonable settlement based on Wilson’s fourteen points, which had been widely publicised and was popular with the anti- war movement in Germany. German officials were not allowed to take part in negotiations, and were horrified at the terms. Germany had no choice but to accept the terms- otherwise continue the war, which they were in no place to do so.

  • Alsace Lorraine to France

  • Eupen and Malmédy to Belgium

  • North Schleswig returned to Denmark

  • the Saar Valley, a heavily industrialised region, was to be administered by the LoN for 15 years, during which France could use its coal mines. At the end of this time a plebiscite would determine whether it should belong to France or Germany.

  • Rhineland demilitarised (France security)

  • much of West Prussia to Poland, allowing it access to the sea through the ‘Polish Corridor' which divided Germany from its province of East Prussia

  • The port of Memel to Lithuania

  • Port of Danzig to LoN control

  • Estonia, Latvia and Lithuania, which Germany had gained through Brest-Litovsk were established as independent states.

  • Lost African colonies e.g Cameroon and Togo which became mandates under LoN

  • Many German- speaking people moved from areas which had come under foreign control, and those who remained were often persecuted for Germany’s role in the war.

  • 100,000 troops

  • no tanks, airforce, subs

  • 6 battleships

  • Anschluss between Germany and Austria banned

  • War Guilt Clause: blamed Germany and its allies for the outbreak and all the damage of WW1, and justified the victorious nations to impose reparations. Reparations on Germany also aimed to weaken the country so it would not threaten others in the future.

Saint Germain - Sept 1919

Austria

  • Lost Bohemia, Moravia to Czechoslovakia

  • Lost Dalmatia, Bosnia and Herzegovinia to Yugoslavia

  • Bukovina to Romania

  • Galicia to Poland

  • Trentino, Istria, Trieste and parts of South Tyrol to Italy.

  • Separation of Austria Hungary (Anschluss forbidden)

  • 30,000 troops

  • conscription banned

  • Suffered economically because most industry had gone to Czechoslovakia.

Neuilly - Nov 1919

Bulgaria

  • Lost territory to Greece, Yugoslavia and Romania

  • Army reduced to 20,000

  • Reparations of $400 million USD

  • Lost their access to Mediterranean

  • Because they played a relatively small part in the war treated more kindly than their allies.

  • However many Bulgarians were governed by foreign powers by 1923.

Trianon - June 1920

Hungary

  • Slovakia and Ruthenia to Czechoslovakia

  • Transylvania to Romania

  • Croatia and Slovenia to Yugoslavia

  • 35,000 troops

Sévres - Aug 1920

Turkey

  • Lost territory to Greece and Italy

  • Ottoman Empire in the middle east mandated to France (Syria) and Britain (Palenstine, Iran and Transjordan)

  • Dardanelles open to all shipping

  • 50,000 troops

  • LoN takes control of their finances and ‘zones of influence’

Lausanne - 1923

Turkey 2.0

  • Under the leadership of Mustafa Kemal, the Turkish National Movement was established with the aim of overturning the terms of the treaty of Sévres and expelling foreign soldiers from the country.

  • Both had been achieved by Oct 1923 when the new Republic of Turkey was formed

  • Most European territory was returned

These treaties reflected the collapse of the former Habsburg and Turkish Empires, but were also part of Wilsons idea of self determination. Wilson’s view of nationality was, however, based entirely on language and ignored other ethnic and religious factors. As a result, for example, 1.6 million people who considered themselves Hungarian would be living under Romanian rule. There were also concern that some newly created boundaries would make it impossible for some countries, such as Austria and Hungary, to be economically viable.

THE BIG FOUR

Woodrow Wilson:

Wilson, who’s country had suffered far less than its European allies during the war, wanted a lenient peace based on the fourteen points and his slogan ‘peace without victory’. He believed that imposing a harsh treaty on Germany would cause resentment and make future conflict more likely. Wilson thought that the greed and selfishness of the rival European nations had been a major contributing factor to the outbreak of the First World War, and saw himself as a mediator between these nations. In truth however, Wilson had very little understanding of the complex problems facing Europe in 1919. Moreover, he could no longer claim to fully represent the government of the USA, as the Democrats had lost control of the Senate in the midterm elections. The war had become increasingly unpopular in the USA. The Republican Party, the political opponents of Wilson’s democratic party, was strongly against American involvement in the Paris peace talks, believing these were essentially a European problem. By the time Wilson arrived in Paris, the Republican Party held a majority in the Senate. As US politician Theodore Roosevelt pointed out: ‘Our allies and our enemies and Mr Wilson himself should all understand that Mr Wilson has no authority to speak for the American people at this time.’

Under these circumstances, it is perhaps unsurprising that what emerged from the Paris peace talks bore only limited resemblance to Wilson’s vision of a fair and just settlement. Five separate treaties were agreed, each dealing with one of the First World War’s defeated nations (none of which was invited to the Paris Peace Conference).

GEORGES CLEMENCEAU – FRANCE

Clemenceau wanted to destroy Germany economically and militarily. He wanted to avenge France’s humiliating defeat in the Franco-Prussian war (1870-71), and gain revenge for the devastation that France had suffered as a result of German aggression in WW1. Ensure Germany could never again threaten French borders. Wanted to secure a guarantee of American and British support in the event of a future German attack.

DAVID LLOYD GEORGE – UK

Lloyd George wanted a less severe settlement. It was in British interests that Germany, a potentially important consumer of British exports, be allowed to recover quickly. However, British public opinion was strongly anti-German, and DLG had just won an election on the promise he would ‘make Germany pay.’ Britain therefore sought a settlement that would punish Germany while, at the same time, making it’s future economic recovery possible. The world’s leading exporter in 1913, Britain had been overtaken by both the USA and Japan by 1919. It has also been estimated that WW1 cost Britain over 3.25 billion pounds. Britain desperately needed to enhance its overseas trade, and Germany was a potentially lucrative partner.

VITTORIO ORLANDO – ITALY

Italy had little influence on the ToV. Orlando’s inability to speak English greatly restricted his participation in negotiations. Moreover, once it became clear Italy would not receive all of its territorial claims, Orlando temporarily withdrew the Italian delegation from the conference in anger. Italy had not entered the war in 1914 when it began, instead joining in April 1915 by signing the Treaty of London with Britain in return for promises of major territorial gains along the Adriatic coast after victory. Italy’s involvement in the war, while not particularly impressive militarily, proved expensive in both human life and financial terms. Over 600,000 soldiers killed, 950,000 wounded. Italian gov spent more in three years of war than it had the previous 50. Once the war was won, the Italian people expected the promises made in the Treaty of London to be honoured. To most Italians, the ToV was a bitter disappointment. Major decisions had been taken by Big Three and Orlando had been largely ignored and humiliated. Although Italy did gain some land, Trentino, South Tyrol, Istria and Trieste, its claims to parts of Dalmatia, Albania, Fiume had all been denied. To the Italians, it appeared other countries, particularly Yugoslavia, had gained at its expense.

Triple Entente- Britain, France and Russia

Triple Alliance- Italy, Austria-Hungary, Germany

PROBLEMS IN SUCCESSOR STATES

The successor states were created from the former Austro-Hungarian and Russian territory and included Czechoslovakia, Poland, Yugoslavia, Austria, and Hungary.

YUGOSLAVIA:

  • Formally established in dec 1918

  • Made of previously independent nations of Serbia and Montenegro, as well as land which had been part of the Habsburg empire.

  • It became home to people of varying ethnic and religious backgrounds- Serbs, Croats, Bosnians, Slovenes, Magyars, Germans, Albanians, Romanians and Macedonians, Orthodox and Roman Catholic Christians, Jews and Muslims.

  • In this situation religious and ethnic disputes were inevitable, and developing effective democracy was impossible.

  • In 1929, the king, Alexander l, banned all political parties and became dictator

  • Bordering a lot of countries, Yugoslavia became involved in territorial disputes

  • To protect itself, it made a series of friendly agreements with other countries

  • In the early 1920s it formed the “Little Entente” with Czechoslovakis, Romania and France.

  • Still remained a vulnerable country

  • Had backwards agricultural methods, Yugoslavia became dependent on Western loans

POLAND:

  • Had more than a century under foreign rule before becoming an independent nation in Nov 1918

  • Of Poland’s 27m population, less than 18m were poles, 1m being Germans

  • 14 political parties: unstable gov

  • 1926, Josef Pilsudski lead a military coup and became dictator

  • Border disputes brought Poland into conflict with Germany, czechoslovakia, Lithuania and Russia

  • Polish leaders wanted to extend Polish territory, particularly by gaining control over Ukraine and Lithuania, which had been part of Poland in the 18th century before being under Russia

  • 1919, Polish forces entered Ukraine. It seemed as it they would lose, however they defeated the Russians at the Battle of Warsaw and resumed their offensive. War ended by the Treaty of Riga 1921, which added a strip of land 160km wide to Poland’s eastern border.

CZECHOSLOVAKIA:

  • The ‘Czechoslovakia First Republic emerged from the collapse of the Habsburg empire in October 1918, and its existence as an independent state was confirmed by the Paris Peace Settlement.

  • In addition to Czechs and Slovaks, Czechoslovakia contained Russians, Magyars, Poles, Jews and more than 3 million German speakers. The German speaking populations of Bohemia, Moravia and the Sudentenland made up a sizeable minority group that persistently claimed it was being discriminated against.

  • Despite these potential problems. Czechoslovakia wad able to maintain a democratic system of Government

  • Blessed with raw materials, rich agricultural lands and productive industry, os remained relatively prosperous

  • Developed protective alliances with Yugoslavia, Romania, Italy and France.

AUSTRIA:

  • Landlocked and with most of its industrially protective areas given to Poland and Czech by the ToSG Austria experienced severe economic problems.

  • Increasingly reliant on foreign loans and inflation was high

  • Political instability

  • Majority of Austrians believed that the solution was union with Germany

HUNGARY:

  • Aftermath of WW1 lead to political chaos

  • Hungarian communist party seized control, and the Hungarian Soviet Republic under the leadership of Béla Kun was announced on the 21 March 1919

  • To remove opposition, Kun launched a violent campaign known as the ‘Red terror’.

  • At the same time, Hungarian troops invaded Czechoslovakia to extend their borders

  • Frenchies made them retreat, so they invaded Romania

  • They were quickly defeated, and threatened by Romanian forces invading them back so the gov collapsed

  • In response, military leaders formed a heavily anti-communist gov, who launched the ‘white terror’ also violent, against those who had supported Kun.

  • Now under a authoritarian regime

  • They had lost 2/3 of population and much of its industrial land to Czech, Romania and yugo.

  • Like Austria, they suffered massive economical issues, and became increasingly reliant on foreign loans.

H

2.1 Why was their dissatisfaction with the peace settlements of 1919-20?

TREATIES

Brest-Litovsk - March 1918

Germany and Russia

The tsarist regime in Russia was overthrown by the Bolsheviks, led by Vladimir Lenin in Oct 1917. He believed it was essential for Russia to end its involvement in the war, as it was having a devastating effect on the Russian economy and lower classes. Wilson had hoped to convince both Russia to remain in the war and urge Germany to seek a peace settlement, however these hopes were dashed when in March of 1918, Lenin’s new Bolshevik government signed Brest-Litovsk with Germany. The terms of this treaty were extremely harsh, and certainly not in line with Wilson’s 14 points. Russia was to lose Finland, Ukraine, Poland, Estonia, Latvia, Lithuania and Georgia- areas containing most of Russias best farmland, raw materials and heavy industry. In the event, Russia lost 25% of its population, 25% of its industry and 90% of its coal mines.

With Russia now out of the war, Germany no longer had to fight a war on two fronts. They had also gained a large amount of land and resources, both of which allowed Germany to launch a major offensive on the western front.

End of Germany - 1918

Allies launched a large counteroffensive in the summer of 1918. German supply lines had been over- extended during their earlier offensive, and German troops were starved of food and other vital equipment. They were being gradually driven back. Realising the situation was becoming hopeless, German military commanders decided to launch one last major naval battle against the British in the English channel. They hoped this would prevent reinforcements and supplies reaching the allied forces in Europe. Convinced this was a suicide mission for a hopeless cause, the German soldiers mutinied, which sparked a wider revolution within Germany. Wilhelm ll was forced into exile and formally abdicated in November 1918. Germany then became the Weimar Republic.

Versailles - Jan 1919

In January 1919, representatives of the victorious nations met at Versailles, near Paris. The aim of this Paris Peace Conference was to develop a document a settlement that would finally end the First World War and, in the words of the French President Raymond Poincaré, ‘prevent a recurrence of it’. The Germans fully expected a reasonable settlement based on Wilson’s fourteen points, which had been widely publicised and was popular with the anti- war movement in Germany. German officials were not allowed to take part in negotiations, and were horrified at the terms. Germany had no choice but to accept the terms- otherwise continue the war, which they were in no place to do so.

  • Alsace Lorraine to France

  • Eupen and Malmédy to Belgium

  • North Schleswig returned to Denmark

  • the Saar Valley, a heavily industrialised region, was to be administered by the LoN for 15 years, during which France could use its coal mines. At the end of this time a plebiscite would determine whether it should belong to France or Germany.

  • Rhineland demilitarised (France security)

  • much of West Prussia to Poland, allowing it access to the sea through the ‘Polish Corridor' which divided Germany from its province of East Prussia

  • The port of Memel to Lithuania

  • Port of Danzig to LoN control

  • Estonia, Latvia and Lithuania, which Germany had gained through Brest-Litovsk were established as independent states.

  • Lost African colonies e.g Cameroon and Togo which became mandates under LoN

  • Many German- speaking people moved from areas which had come under foreign control, and those who remained were often persecuted for Germany’s role in the war.

  • 100,000 troops

  • no tanks, airforce, subs

  • 6 battleships

  • Anschluss between Germany and Austria banned

  • War Guilt Clause: blamed Germany and its allies for the outbreak and all the damage of WW1, and justified the victorious nations to impose reparations. Reparations on Germany also aimed to weaken the country so it would not threaten others in the future.

Saint Germain - Sept 1919

Austria

  • Lost Bohemia, Moravia to Czechoslovakia

  • Lost Dalmatia, Bosnia and Herzegovinia to Yugoslavia

  • Bukovina to Romania

  • Galicia to Poland

  • Trentino, Istria, Trieste and parts of South Tyrol to Italy.

  • Separation of Austria Hungary (Anschluss forbidden)

  • 30,000 troops

  • conscription banned

  • Suffered economically because most industry had gone to Czechoslovakia.

Neuilly - Nov 1919

Bulgaria

  • Lost territory to Greece, Yugoslavia and Romania

  • Army reduced to 20,000

  • Reparations of $400 million USD

  • Lost their access to Mediterranean

  • Because they played a relatively small part in the war treated more kindly than their allies.

  • However many Bulgarians were governed by foreign powers by 1923.

Trianon - June 1920

Hungary

  • Slovakia and Ruthenia to Czechoslovakia

  • Transylvania to Romania

  • Croatia and Slovenia to Yugoslavia

  • 35,000 troops

Sévres - Aug 1920

Turkey

  • Lost territory to Greece and Italy

  • Ottoman Empire in the middle east mandated to France (Syria) and Britain (Palenstine, Iran and Transjordan)

  • Dardanelles open to all shipping

  • 50,000 troops

  • LoN takes control of their finances and ‘zones of influence’

Lausanne - 1923

Turkey 2.0

  • Under the leadership of Mustafa Kemal, the Turkish National Movement was established with the aim of overturning the terms of the treaty of Sévres and expelling foreign soldiers from the country.

  • Both had been achieved by Oct 1923 when the new Republic of Turkey was formed

  • Most European territory was returned

These treaties reflected the collapse of the former Habsburg and Turkish Empires, but were also part of Wilsons idea of self determination. Wilson’s view of nationality was, however, based entirely on language and ignored other ethnic and religious factors. As a result, for example, 1.6 million people who considered themselves Hungarian would be living under Romanian rule. There were also concern that some newly created boundaries would make it impossible for some countries, such as Austria and Hungary, to be economically viable.

THE BIG FOUR

Woodrow Wilson:

Wilson, who’s country had suffered far less than its European allies during the war, wanted a lenient peace based on the fourteen points and his slogan ‘peace without victory’. He believed that imposing a harsh treaty on Germany would cause resentment and make future conflict more likely. Wilson thought that the greed and selfishness of the rival European nations had been a major contributing factor to the outbreak of the First World War, and saw himself as a mediator between these nations. In truth however, Wilson had very little understanding of the complex problems facing Europe in 1919. Moreover, he could no longer claim to fully represent the government of the USA, as the Democrats had lost control of the Senate in the midterm elections. The war had become increasingly unpopular in the USA. The Republican Party, the political opponents of Wilson’s democratic party, was strongly against American involvement in the Paris peace talks, believing these were essentially a European problem. By the time Wilson arrived in Paris, the Republican Party held a majority in the Senate. As US politician Theodore Roosevelt pointed out: ‘Our allies and our enemies and Mr Wilson himself should all understand that Mr Wilson has no authority to speak for the American people at this time.’

Under these circumstances, it is perhaps unsurprising that what emerged from the Paris peace talks bore only limited resemblance to Wilson’s vision of a fair and just settlement. Five separate treaties were agreed, each dealing with one of the First World War’s defeated nations (none of which was invited to the Paris Peace Conference).

GEORGES CLEMENCEAU – FRANCE

Clemenceau wanted to destroy Germany economically and militarily. He wanted to avenge France’s humiliating defeat in the Franco-Prussian war (1870-71), and gain revenge for the devastation that France had suffered as a result of German aggression in WW1. Ensure Germany could never again threaten French borders. Wanted to secure a guarantee of American and British support in the event of a future German attack.

DAVID LLOYD GEORGE – UK

Lloyd George wanted a less severe settlement. It was in British interests that Germany, a potentially important consumer of British exports, be allowed to recover quickly. However, British public opinion was strongly anti-German, and DLG had just won an election on the promise he would ‘make Germany pay.’ Britain therefore sought a settlement that would punish Germany while, at the same time, making it’s future economic recovery possible. The world’s leading exporter in 1913, Britain had been overtaken by both the USA and Japan by 1919. It has also been estimated that WW1 cost Britain over 3.25 billion pounds. Britain desperately needed to enhance its overseas trade, and Germany was a potentially lucrative partner.

VITTORIO ORLANDO – ITALY

Italy had little influence on the ToV. Orlando’s inability to speak English greatly restricted his participation in negotiations. Moreover, once it became clear Italy would not receive all of its territorial claims, Orlando temporarily withdrew the Italian delegation from the conference in anger. Italy had not entered the war in 1914 when it began, instead joining in April 1915 by signing the Treaty of London with Britain in return for promises of major territorial gains along the Adriatic coast after victory. Italy’s involvement in the war, while not particularly impressive militarily, proved expensive in both human life and financial terms. Over 600,000 soldiers killed, 950,000 wounded. Italian gov spent more in three years of war than it had the previous 50. Once the war was won, the Italian people expected the promises made in the Treaty of London to be honoured. To most Italians, the ToV was a bitter disappointment. Major decisions had been taken by Big Three and Orlando had been largely ignored and humiliated. Although Italy did gain some land, Trentino, South Tyrol, Istria and Trieste, its claims to parts of Dalmatia, Albania, Fiume had all been denied. To the Italians, it appeared other countries, particularly Yugoslavia, had gained at its expense.

Triple Entente- Britain, France and Russia

Triple Alliance- Italy, Austria-Hungary, Germany

PROBLEMS IN SUCCESSOR STATES

The successor states were created from the former Austro-Hungarian and Russian territory and included Czechoslovakia, Poland, Yugoslavia, Austria, and Hungary.

YUGOSLAVIA:

  • Formally established in dec 1918

  • Made of previously independent nations of Serbia and Montenegro, as well as land which had been part of the Habsburg empire.

  • It became home to people of varying ethnic and religious backgrounds- Serbs, Croats, Bosnians, Slovenes, Magyars, Germans, Albanians, Romanians and Macedonians, Orthodox and Roman Catholic Christians, Jews and Muslims.

  • In this situation religious and ethnic disputes were inevitable, and developing effective democracy was impossible.

  • In 1929, the king, Alexander l, banned all political parties and became dictator

  • Bordering a lot of countries, Yugoslavia became involved in territorial disputes

  • To protect itself, it made a series of friendly agreements with other countries

  • In the early 1920s it formed the “Little Entente” with Czechoslovakis, Romania and France.

  • Still remained a vulnerable country

  • Had backwards agricultural methods, Yugoslavia became dependent on Western loans

POLAND:

  • Had more than a century under foreign rule before becoming an independent nation in Nov 1918

  • Of Poland’s 27m population, less than 18m were poles, 1m being Germans

  • 14 political parties: unstable gov

  • 1926, Josef Pilsudski lead a military coup and became dictator

  • Border disputes brought Poland into conflict with Germany, czechoslovakia, Lithuania and Russia

  • Polish leaders wanted to extend Polish territory, particularly by gaining control over Ukraine and Lithuania, which had been part of Poland in the 18th century before being under Russia

  • 1919, Polish forces entered Ukraine. It seemed as it they would lose, however they defeated the Russians at the Battle of Warsaw and resumed their offensive. War ended by the Treaty of Riga 1921, which added a strip of land 160km wide to Poland’s eastern border.

CZECHOSLOVAKIA:

  • The ‘Czechoslovakia First Republic emerged from the collapse of the Habsburg empire in October 1918, and its existence as an independent state was confirmed by the Paris Peace Settlement.

  • In addition to Czechs and Slovaks, Czechoslovakia contained Russians, Magyars, Poles, Jews and more than 3 million German speakers. The German speaking populations of Bohemia, Moravia and the Sudentenland made up a sizeable minority group that persistently claimed it was being discriminated against.

  • Despite these potential problems. Czechoslovakia wad able to maintain a democratic system of Government

  • Blessed with raw materials, rich agricultural lands and productive industry, os remained relatively prosperous

  • Developed protective alliances with Yugoslavia, Romania, Italy and France.

AUSTRIA:

  • Landlocked and with most of its industrially protective areas given to Poland and Czech by the ToSG Austria experienced severe economic problems.

  • Increasingly reliant on foreign loans and inflation was high

  • Political instability

  • Majority of Austrians believed that the solution was union with Germany

HUNGARY:

  • Aftermath of WW1 lead to political chaos

  • Hungarian communist party seized control, and the Hungarian Soviet Republic under the leadership of Béla Kun was announced on the 21 March 1919

  • To remove opposition, Kun launched a violent campaign known as the ‘Red terror’.

  • At the same time, Hungarian troops invaded Czechoslovakia to extend their borders

  • Frenchies made them retreat, so they invaded Romania

  • They were quickly defeated, and threatened by Romanian forces invading them back so the gov collapsed

  • In response, military leaders formed a heavily anti-communist gov, who launched the ‘white terror’ also violent, against those who had supported Kun.

  • Now under a authoritarian regime

  • They had lost 2/3 of population and much of its industrial land to Czech, Romania and yugo.

  • Like Austria, they suffered massive economical issues, and became increasingly reliant on foreign loans.