The Treaty of Versailles, signed in 1919, was significant in shaping modern Europe by officially ending World War I and imposing heavy reparations and territorial losses on Germany. The treaty redrew national borders, dismantled empires, and established new nations based on self-determination, altering the political landscape of Europe. Its punitive measures against Germany created widespread resentment, setting the stage for economic hardship and political instability, which contributed to the rise of extremist movements, including Nazism. The treaty's failures, particularly its inability to foster lasting peace, led to the outbreak of World War II and prompted later international efforts for more effective peacekeeping and diplomacy.