The signing of the Treaty of Versailles in 1919 marked the formal end of World War I and established the framework for peace negotiations. It was significant because it imposed heavy reparations and territorial losses on Germany, redesigned European borders, and officially laid blame for the war on the Central Powers. While it aimed to maintain peace and prevent future conflicts, many historians argue that its punitive measures contributed to economic hardships in Germany and political instability, laying the groundwork for the rise of Nazism and World War II. The Treaty also established the League of Nations, an early attempt at international cooperation.