The economic consequence of the Treaty of Versailles imposed on Germany was the imposition of heavy reparations, which severely strained the German economy. Signed in 1919, the treaty aimed to hold Germany accountable for World War I, demanding substantial payments and territorial concessions. This situation fostered widespread economic hardship, hyperinflation, and social unrest in Germany during the 1920s. The treaty's punitive measures contributed to a climate of discontent, eventually facilitating the rise of Adolf Hitler and the Nazi Party, which exploited nationalist sentiments to gain power and ultimately led to World War II.