The importance of the Treaty of Versailles in shaping post-war Europe lies in its role in officially ending World War I and establishing the conditions for peace. The treaty imposed harsh reparations and territorial losses on Germany, aimed at preventing future aggression. However, the punitive measures and redrawing of borders created economic instability and political resentment, setting the stage for the rise of extremism and ultimately World War II. The treaty illustrates how peace agreements can have lasting impacts, influencing geopolitical dynamics for decades.