The Balkans were guaranteed to explode in the early 1900s. Different ethnic groups abounded in the region and were all vying for a country of their own. The area had been controlled by empires for the previous centuries and was starting to gain independence in some places and lose it in others. The dispute between powerful neighbors over influence in the Balkans wasn't helping either.
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Several nationalist uprising had broken out in the Balkans.
Literally, a powder keg is a keg or barrel used to hold gunpowder. In figurative terms, a powder keg is an expression used to describe a potentially explosive social or political or other similar situation.
The assassination of Archduke Franz Ferdinand was the "spark" required to light the powder keg which started WW1.
The Balkan Peninsula
In my personal opinion, the Balkans has been a source of conflict for 1000 years. It is a principal trade route from Asia to Europe.