The Treaty of Versailles, signed in 1919, was significant in shaping modern history as it formally ended World War I. The treaty imposed heavy reparations and territorial losses on Germany, contributing to economic hardships and political instability in the region. It also created the League of Nations in an attempt to prevent future conflicts. The treaty's harsh terms are often cited as factors that fueled nationalist sentiments and led to World War II. Moreover, the Treaty of Versailles redefined global power structures, highlighted the consequences of militarism, and set the stage for international relations in the 20th century.