The Treaty of Versailles, signed in 1919, had profound impacts on postwar Europe, reshaping borders and establishing new nations. It held Germany responsible for the war, imposing heavy reparations and significantly limiting its military capabilities. This created widespread resentment in Germany, contributing to economic hardship and political instability. The treaty also established the League of Nations in an attempt to ensure future peace, although it ultimately failed to prevent further conflict. The harsh terms fostered nationalism and contributed to the rise of extremist movements, including Nazism, leading to World War II, highlighting the treaty's long-term repercussions for Europe.