The main impact of the Treaty of Versailles on Germany was the imposition of harsh reparations and territorial losses that contributed to widespread economic hardship and political instability. Signed in 1919 to formally end World War I, the treaty placed full blame for the war on Germany, leading to significant military limitations and territorial concessions. The economic repercussions of heavy reparations contributed to hyperinflation and societal unrest during the 1920s and early 1930s, ultimately fostering resentment and extremism, which played a role in the rise of Adolf Hitler and the Nazi Party.