Chapter 8 looks at the famous case of German World War I reparations. Had Germany defaulted already in 1929, it would have saved two years worth of interest payments and entered autarky at the same time, as market access was by then de facto gone. At this point, the European nations did not have the ability to enforce debt contracts and the United States agreed to a de facto cancellation of reparations. The German sovereign default in the 1930s was on debt issued to pay reparations, but it also had several effects on other state liabilities, with loans offering different kinds of creditor protection. Germany in the 1920s had high levels of reparations, but was able to borrow, because it offered de facto seniority to new loans. Creditors were willing to lend into a large debt stock because they thought they would rank senior to reparations. The German default on its sovereign debt was special because it was allowed by its politically weak creditors, who were unable to enforce debt contracts in the 1930s.

Chapter 23 shows how in the wake of the Ruhr crisis a further transformation of European and transatlantic politics was initiated, which led to significant reforms of the Versailles system and the construction of a more sustainable Atlantic peace system in the mid-1920s. It brings out that this system came to be premised on the watershed settlements of the London reparations conference of 1924 and the Locarno security pact of 1925. And it argues that what made these advances possible were constructive learning processes both on the part of the victors and on the part of the vanquished of the Great War. It highlights that these processes gave rise to the formation of a novel European concert, which began to integrate Weimar Germany in a reconfigured Atlantic order, supported by an informal American hegemon, that began to stabilise not only western but also eastern Europe.

Chapter 7 examines the DNVP’s reaction to the stabilization of Germany’s republican system under the auspices of a new government formed by the Center Party’s Wilhelm Marx in January 1924. In the campaign for the May 1924 Reichstag elections, the DNVP not only did its best to dissociate itself from the anti-social consequences of stabilization, but moved racism and antisemitism to the forefront of its campaign in an attempt to preempt attacks from the racists that had bolted the party in 1922. The result was a stunning victory at the polls that made its delegation the largest in the Reichstag. But with success comes responsibility, and the DNVP was suddenly faced with the task of voting for the Dawes Plan, a plan that in the campaign it had denounced as a “second Versailles.” In the decisive vote in August 1924, the Nationalist delegation to the Reichstag split right down the middle in a dramatic turn of events that only highlighted how deeply divided the DNVP was as it faced the prospect of governmental responsibility.