2024-2025
EUROPEAN ECONOMIC HISTORY
MODULE 7: THE ROAD TO THE SECOND WORLD WAR AND
A NEW EUROPE
KH
,The road to the Second World War and a new Europe:
In this module we will be discussing the aftermath of the First World War, the period and causes leading
up to the Second World War, the aftermath of the Second World War, and how these events led to drastic
changes leading to a “New Europe”.
The Aftermath of the First World War:
The First World War ended on November 11th, 1918, “Armistice”. Read module 5 for more information
about “Armistice”. The First World War has cost ~ 16 million lives and left ~ 21 million wounded. Part of
that can be attributed to the mass movement of people (soldiers and refugees) which allowed for the
deadly Spanish Flu to spread in 1918.
Geopolitical:
The war had also triggered the collapse of the four major imperial dynasties, Habsburgs, Austria-Hungary,
German Empire, Russian Tsar. The monarchies of Germany (November 1918), Austria, Hungary, Turkey,
and Russia were all abolished in favour of a republican system.
Economical:
The war had left the allied countries heavily indebted to the US and Germany suRered from the heavy
reparations imposed by the Treaty of Versailles. The reparations were set at around 132B Gold Marks which
was equivalent to 33B USD at the time (605B USD in 2025).
Seeds for the Second World War:
The diRicult economic conditions caused nations to establish nationalist policies. The allies had
overlooked one very important thing when they implemented the punitive peace policy and that was the
possibility of a growing resentment from the German people that faced the consequences such as
inflation and economic depression. The resentment led to the creation of the nationalist extremist Nazi
party (NSDAP: Nationalsozialistische Deutsche Arbeiterpartei) led by Adolf Hitler (More about this later).
Woodrow Wilson:
United States’ President Woodrow Wilson proposed a 14-point program for world peace on January 8th,
1918.
1. Open diplomacy without secret treaties promotes transparency in international relations and
prevents hidden alliances that can escalate conflicts.
2. Freedom of the seas ensures economic free trade on international waters during both war and
peace.
3. Equal trade conditions removes economic barriers between nations to promote fair international
commerce.
4. Reduction of armaments requires all nations to decrease their military weapons and forces to
reduce the likelihood of future wars.
5. Fair adjustment of colonial claims balances the interests of both native peoples and colonists in
territorial disputes.
6. Russia should be allowed to determine its own form of government with all German troops
withdrawing from Russian soil.
7. German troops must evacuate Belgium, which should be restored as a fully independent country.
8. France should regain all its territory, including the disputed region of Alsace-Lorraine.
9. Italian borders should be redrawn to include all ethnically Italian people within Italy’s national
boundaries.
1
, 10. Austria-Hungary should be granted the opportunity for self-determination as an independent
country.
11. The Balkan borders should be redrawn to create independent states including Romania, Serbia,
and Montenegro.
12. The Turkish people of the Ottoman Empire should have their own country while ensuring security
for other nationalities under Ottoman rule.
13. Poland should be established as an independent country with access to the sea.
14. A League of Nations should be formed to protect the independence and territorial integrity of all
countries regardless of size.
Ironically, US Congress voted against joining the League which made it a weak and ineRective
organisation. The ineRectiveness to maintain global peace ultimately resulted in WWII.
“This is a war to end all wars.”, a quote by President Woodrow Wilson in 1917 hoping for a free, democratic,
peaceful world.
Europe Pre and Post WWI:
https://mrknighths.weebly.com/pre-and-post-world-war-1-map-comparison.html
Paris Peace Conference: 1919
The Paris Peace Conference was an international meeting held in Paris aimed at establishing the terms of
peace following the end of WWI where Allied Forces defeated the Central Powers. Delegations were sent
by over 32 nations, but decision making was mainly done by the “Big Four” meaning the UK, France, the
US, and Italy. Also worth noting is the absence of the “losing” parties in the conference (Russia, Germany,
Austria…). Consequently, these nations were essentially making decisions without any input from the
nations on whom they intended to impose them. Despite US President Woodrow Wilson pleading for a
“Peace without Victory”, the other members of the “Big Four” had other plans. The United Kingdom wanted
pacification on the European continent to refocus on their Empire, France wanted to see the damage of
the war repaired or compensated and security against the threat of German resurgence, and Italy wanted
to establish themselves as one of the Great European powers by focussing on territorial gain (e.g.
territories that belonged to the fallen Austria-Hungary Empire).
2
EUROPEAN ECONOMIC HISTORY
MODULE 7: THE ROAD TO THE SECOND WORLD WAR AND
A NEW EUROPE
KH
,The road to the Second World War and a new Europe:
In this module we will be discussing the aftermath of the First World War, the period and causes leading
up to the Second World War, the aftermath of the Second World War, and how these events led to drastic
changes leading to a “New Europe”.
The Aftermath of the First World War:
The First World War ended on November 11th, 1918, “Armistice”. Read module 5 for more information
about “Armistice”. The First World War has cost ~ 16 million lives and left ~ 21 million wounded. Part of
that can be attributed to the mass movement of people (soldiers and refugees) which allowed for the
deadly Spanish Flu to spread in 1918.
Geopolitical:
The war had also triggered the collapse of the four major imperial dynasties, Habsburgs, Austria-Hungary,
German Empire, Russian Tsar. The monarchies of Germany (November 1918), Austria, Hungary, Turkey,
and Russia were all abolished in favour of a republican system.
Economical:
The war had left the allied countries heavily indebted to the US and Germany suRered from the heavy
reparations imposed by the Treaty of Versailles. The reparations were set at around 132B Gold Marks which
was equivalent to 33B USD at the time (605B USD in 2025).
Seeds for the Second World War:
The diRicult economic conditions caused nations to establish nationalist policies. The allies had
overlooked one very important thing when they implemented the punitive peace policy and that was the
possibility of a growing resentment from the German people that faced the consequences such as
inflation and economic depression. The resentment led to the creation of the nationalist extremist Nazi
party (NSDAP: Nationalsozialistische Deutsche Arbeiterpartei) led by Adolf Hitler (More about this later).
Woodrow Wilson:
United States’ President Woodrow Wilson proposed a 14-point program for world peace on January 8th,
1918.
1. Open diplomacy without secret treaties promotes transparency in international relations and
prevents hidden alliances that can escalate conflicts.
2. Freedom of the seas ensures economic free trade on international waters during both war and
peace.
3. Equal trade conditions removes economic barriers between nations to promote fair international
commerce.
4. Reduction of armaments requires all nations to decrease their military weapons and forces to
reduce the likelihood of future wars.
5. Fair adjustment of colonial claims balances the interests of both native peoples and colonists in
territorial disputes.
6. Russia should be allowed to determine its own form of government with all German troops
withdrawing from Russian soil.
7. German troops must evacuate Belgium, which should be restored as a fully independent country.
8. France should regain all its territory, including the disputed region of Alsace-Lorraine.
9. Italian borders should be redrawn to include all ethnically Italian people within Italy’s national
boundaries.
1
, 10. Austria-Hungary should be granted the opportunity for self-determination as an independent
country.
11. The Balkan borders should be redrawn to create independent states including Romania, Serbia,
and Montenegro.
12. The Turkish people of the Ottoman Empire should have their own country while ensuring security
for other nationalities under Ottoman rule.
13. Poland should be established as an independent country with access to the sea.
14. A League of Nations should be formed to protect the independence and territorial integrity of all
countries regardless of size.
Ironically, US Congress voted against joining the League which made it a weak and ineRective
organisation. The ineRectiveness to maintain global peace ultimately resulted in WWII.
“This is a war to end all wars.”, a quote by President Woodrow Wilson in 1917 hoping for a free, democratic,
peaceful world.
Europe Pre and Post WWI:
https://mrknighths.weebly.com/pre-and-post-world-war-1-map-comparison.html
Paris Peace Conference: 1919
The Paris Peace Conference was an international meeting held in Paris aimed at establishing the terms of
peace following the end of WWI where Allied Forces defeated the Central Powers. Delegations were sent
by over 32 nations, but decision making was mainly done by the “Big Four” meaning the UK, France, the
US, and Italy. Also worth noting is the absence of the “losing” parties in the conference (Russia, Germany,
Austria…). Consequently, these nations were essentially making decisions without any input from the
nations on whom they intended to impose them. Despite US President Woodrow Wilson pleading for a
“Peace without Victory”, the other members of the “Big Four” had other plans. The United Kingdom wanted
pacification on the European continent to refocus on their Empire, France wanted to see the damage of
the war repaired or compensated and security against the threat of German resurgence, and Italy wanted
to establish themselves as one of the Great European powers by focussing on territorial gain (e.g.
territories that belonged to the fallen Austria-Hungary Empire).
2
