The Treaty of Versailles, signed in 1919 after World War I, had a serious effect on post-war Germany and Europe by imposing heavy reparations and territorial losses on Germany. The treaty aimed to prevent future conflicts but instead fostered deep resentment among Germans, contributing to economic instability and widespread political discontent. This environment facilitated the rise of extremist movements, notably the National Socialist German Workers' Party (Nazi Party), eventually leading to World War II. The treaty's harsh terms are often cited as a key factor that destabilized Europe during the interwar period.