Why did Frances economy decline?

Answer 1

Following the end of the Napoleon III era, the Third French Republic was formed. The National Assembly, in 1871, held an election. The result was a victory by a majority of "royalists" or better said "monarchists" . This group won the election by promising to end all hostilities with Prussia. The more democratic leaning "republicans" now a minority had favored more war with Prussia.

In order to keep their pledge, the royalists sued for peace with the powerful Prussians. The Prussian peace plan was a harsh one, but it needed to be accepted. This peace plan was called the Treaty of Frankfurt.

To back step a moment, more needs to be said about the war with Prussia.

Napoleon III had declared the war on Prussia.

Prussia was immediately joined by the forces of 4 southern German states. Under General von Moltke's command, the Prussian armies invaded France & won a major victory at Sedan.

The terms of the Frankfurt treaty were:

1. Alsace - Lorraine was given to Germany. The provinces were rich in iron ore & coal, and mostly occupied by Frenchmen;

2. France had to pay Germany a huge war indemnity; and

3. Until this was paid, France had to allow for German military occupation of the seeded lands.