The Young Plan 1929

• Set up by the Allies, headed by an American banker called Owen Young
• Reduced the total reparations debt from £6.6 billion to £2 billion
• Germany was given a further 59 years to pay (until 1988)
• Lower reparations payments allowed the government to lower taxes on ordinary German people
• Lower taxes meant more public spending power – boosted German industry and created more jobs
• The French agreed to leave the Rhineland in 1930
• Hitler criticised this as ‘passing on the penalty to the unborn.’
• The Wall Street Crash meant most of the benefits of the Young Plan didn’t have time to make an impact.