The fear of Communism certainly allowed the Nazi party to exploit deep-rooted fears, displaying themselves as saviours of the nation. workers, which led to a rise in crime. Many companies were forced to declare for bankruptcy, exacerbating the conditions in Germany, creating further unemployment. That said, it can be argued that the, collapse of the Grand Coalition was purely due to internal factors that couldve been handled, efficiently by the government itself. Germany was highly dependent on these loans, and this demand caused a depression in Germany and led to high levels of unemployment. This means that the collapse of the Grand Coalition was brought forward by divisions within government, that were worsened by the economic depression. Home. Stresemann had accepted, and Stresemann was one of the main contributors of, put a stop to hyperinflation, suggesting that he was. This led to disagreements and a general inability to pass legislation. why did the grand coalition collapse 1930 why did the grand coalition collapse 1930. why did the grand coalition collapse 1930. In this, Papen made negotiations with Hitler to make a Nai-led coalition government, a plan devised to ensure Papens position of power within government. This can be seen in Hitlers electoral success, which labelled his party as the biggest party in the Reichstag. The banking collapse in 1931 made matters even worse. Hitlers chancellorship (starting on 30th January 1933) can certainly be credited due to the backstairs intrigue. Therefore, it was the importance of Hitler as a figurehead to the Nazi party that allowed it to achieve electoral success because he knew how to play with people's emotions and fears, convincing them that he had the answer to all their problems. Therefore, Stresemanns economic policies were a significant cause of the collapse of the Grand Coalition, although it did not have as much of an impact as the depression, as without the Stock Market Crash, there would have been no reason for the USA to ask for the return of their loans at such short notice. Article 48, which had been built into the constitution, meant that there was a likely risk of Germanys coalitions failing.

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