After WWI, Germany faced significant economic and political problems. The Treaty of Versailles imposed harsh reparations on Germany that caused inflation and unrest. Meanwhile, the League of Nations proved too weak to effectively address international issues. Several authoritarian regimes rose in Europe during this unstable time period, including fascism in Italy led by Mussolini and Stalin's communist dictatorship in the Soviet Union. In Germany, Hitler capitalized on economic struggles and nationalist sentiment to transform the Nazi party into a dominant force and establish a totalitarian fascist state.