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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.
The Physical impact of the Treaty of Versailles. The Treaty of Versailles radically altered the Geography of Europe. The Treaty had clauses that resulted in areas of land being taken from Germany.The following maps illustrate the scale of these losses: From these maps it is clear that Germany suffered large territorial losses.t was not just in Europe that German suffered territorial losses. All of Germany's overseas colonies were annexed by the Allies, either to become colonies or areas that were managed until independence could be maintained autonomously.