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The Impact of the Treaty of Versailles. The Treaty of Versailles was the Peace Settlement between the Allies and Germany at the end of the First World War. The German authorities had little choice but to accept the terms of the Treaty presented by 'the Big Three'.This section looks at some of the implications of the terms of the Treaty of Versailles.he financial impact of the Treaty. The Treaty of Versailles blamed Germany for the First World War. As a result of this Germany was also held accountable for the cost of the war and the Treaty dictated that compensation would have to be paid to the Allies.
For the Allies, the treaty had created a just peace which weakened Germany, secured the French border against attack and created an organisation to ensure future world peace, to be called the League of Nations. Yet the backlash in Germany against the Versailles âDiktatâ was enormous.opular British newspaper slogan during the negotiation of the Treaty of Versailles. On 28 June 1919, the peace treaty that ended World War I was signed by Germany and the Allies at the Palace of Versailles near Paris.