The Treaty of Versailles, signed in 1919, imposed severe reparations and territorial losses on Germany after World War I. This created a significant dilemma for the nation, as the harsh penalties led to economic hardship and resentment among the German populace. The treaty's terms were perceived as humiliating, fostering a sense of injustice and loss of national pride. Consequently, this discontent contributed to instability in the Weimar Republic and the rise of radical political movements, including the Nazi Party, ultimately leading to World War II. The treaty's punitive measures exemplified how peace settlements can sometimes sow the seeds of future conflict.