How did war debt and reparations affects European nations after world war 1?

After World War I, war debts and reparations placed a significant financial burden on European nations, leading to economic instability and hyperinflation in countries like Germany. The Treaty of Versailles imposed heavy reparations on Germany, which not only fueled resentment but also contributed to widespread poverty and political unrest. This economic turmoil undermined post-war recovery efforts and ultimately paved the way for the rise of extremist movements, including the Nazis. Consequently, the harsh financial penalties and debts hindered cooperation among European nations and sowed the seeds for future conflicts.