When bad things happen between countries, sometimes they try to make up for it by giving each other things. For example, if one country hurts another country, the first country might give the second country money or other things to say sorry and make things better.
One time, a very bad thing happened between Israel and Germany. During World War II, many Jewish people were hurt and killed by Germans. After the war was over, Germany wanted to make things better with Israel.
So, they made an agreement called reparations. This agreement said that Germany would give Israel money to help Jewish people who were hurt during the war. It also said that Israel would recognize Germany as a country, and that the two countries would start trading with each other.
The reparations agreement was a way for Israel and Germany to try and make things better after something very bad happened between them. While it may not make everything okay, it was a step towards showing that people can still work together even after bad things have happened in the past.