The Treaty of Versailles, signed in 1919, had profound historical impacts on Germany, imposing heavy reparations and territorial losses that engendered significant economic hardship. Germany was forced to accept full responsibility for World War I through the "War Guilt Clause." The treaty's punitive measures fueled national discontent and resentment, ultimately contributing to the rise of extremist political movements, including the Nazi Party. The perceived injustices of the treaty are often cited as factors leading to World War II, illustrating how a peace settlement can foster conditions for future conflict rather than stability.