After the defeat of Imperial Germany, the Weimar Republic came into existence. The Republic had a democratic constitution and a federal structure. The Republic was not well received by the people.

The Weimar Republic faced many problems on all fronts- economic, social, and political. It was held responsible for the defeat in the First World War. The Republic had to pay war compensation and this put the Republic in deep financial crisis. Germany had fought the war largely on loans and had to pay war reparations in gold. Subsequently, gold reserves depleted and the value of the German Mark fell. The prices of essential commodities rose dramatically.

The Weimar Republic faced problems on the political front also. The constitution had many defects. The constitution gave the President the powers to impose emergency, suspend civil rights, and rule by decree.

The Weimar Republic had 20 different cabinets within a short span of time. Soon people lost confidence in the democratic parliamentary system.