Why could Germany not pay reparations?

Answer 1

Germany struggled to pay reparations after World War I primarily due to its devastated economy, which was exacerbated by the Treaty of Versailles' harsh terms. The country faced hyperinflation in the early 1920s, leading to a collapse of its currency and widespread poverty. Additionally, the global economic downturn during the Great Depression further hindered Germany's ability to meet its financial obligations. These factors combined made it nearly impossible for Germany to fulfill the reparations payments demanded by the Allies.