The signing of the terms of the Treaty of Versailles after World War I was historically significant as it formally ended the war and aimed to ensure lasting peace. The treaty imposed significant financial reparations and territorial losses on Germany, which significantly reshaped Europe's political landscape. It also established the League of Nations, an international organization aimed at preventing further conflicts. However, the treaty's harsh terms contributed to economic instability in Germany and are often cited as a precursor to the emergence of World War II, demonstrating the complexities of peace negotiations.