The formation of Paris Commune in March 1871 was another step forward in the development of socialist movement. The Commune was formed by the workers as a protest against the disgraceful conditions accepted by the French Government after its defeat in the Franco-Prussian War. The workers of France did not agree with the cession of Alsace and Lorraine to Germany and the payment of huge war indemnity and, therefore, decided to resist the Germans.
They formed a Council called Paris Commune in March 1871 which declared its aim as ending of exploitation, stock-exchange monopolies and speculation. The government of France succeeded in exterminating the Commune with the help of German forces.