Young Plan, 1929

What was the Young Plan?

The Young Plan was another deal that aimed to help Germany pay the reparations bill.

When was the Young Plan created?

The Young Plan was signed in August 1929.

Who created the Young Plan?

Owen Young, an American banker, helped negotiate the Young Plan with Stresemann and Germany.

Why was the Young Plan needed?

The Young Plan was created to help Weimar Germany pay its reparations bill.

What was agreed in the Young Plan?

The Young Plan stated Germany would have 59 years to pay the reparations bill, which was reduced from £6.6 billion to £2 billion.

What were the benefits of the Young Plan?

There were 3 key benefits of the Young Plan:

• ❖ The lower reparations payments meant the Weimar government could in turn reduce taxes, giving people more money to spend or save.
• ❖ It helped them recover economically.
• ❖ It increased confidence politically.

How did the Young Plan not help Weimar Germany?

There were 2 key criticisms of the Young Plan:

• ❖ The reparations payment was still high at £50 million per year.
• ❖ The extreme political parties were furious that reparations had not been cancelled. Hitler commented that extending payments over 59 years was "passing the penalty onto the unborn.".