The significance of the Treaty of Versailles in world politics lies in its role as the peace settlement that formally ended World War I. Signed in 1919, it imposed harsh reparations and territorial losses on Germany, reshaping European borders and fostering resentment. This treaty is often cited as a contributing factor to the rise of totalitarian regimes and the outbreak of World War II due to its perceived injustices. It also laid the groundwork for future international agreements, establishing institutions like the League of Nations, highlighting the challenges of post-war reconciliation and lasting peace.