After World War I, the Treaty of Versailles imposed heavy reparations on Germany to compensate the Allied powers for the damages caused during the war. These payments were intended to cover military expenses, civilian losses, and infrastructure damage. The total amount demanded was around 132 billion gold marks, a sum that placed a significant strain on the German economy. The burden of these reparations contributed to severe economic difficulties in Germany, leading to hyperinflation and social unrest in the 1920s. The harsh terms of the treaty and the reparations are often cited as factors that fueled resentment and instability, ultimately paving the way for World War II.