The Dawes Plan increased the stability of European nations because it provided the opportunity for quicker repayment of debts. It was a plan set up, which received the Noble Peace Prize afterwards, although it did not work out in the long run, for the Triple Entente to receive debt money which increased yearly from Germany which had caused massive damage during World War I. This was the solution for the reparations problem after World War I ended and the European powers were stagnated on what to do.
(MC)How did the Dawes Plan increase the stability of European nations? It offered incentives for the rebuilding of war-torn areas. It allowed for political leaders to resolve differences through mediation. It encouraged the sale of natural resources to neighboring nations. It provided the opportunity for quicker repayment of debts.