Launch of the Marshall Plan

Western Europe’s post-WWII reconstruction begins

Reduced to rubble during the Second World War, Germany in 1945 was almost completely economically inactive and its population – swollen by refugees – was starving, destitute and, in many cases, homeless. The bitterly cold winter of 1946/47 made it difficult to transport food and other supplies. Great Britain, France and Italy were also suffering from serious social and economic dislocation. Whilst the USA had emerged from the war in a far stronger economic position, it soon recognized that the Europeans were in no position to buy surplus American goods and feared a renewed depression. It would be a matter of US self-interest to resuscitate the European economy – including that of its former enemies.

The European Recovery Program – better known by the name of its progenitor, US Secretary of State George Marshall – was signed into law by President Truman on 3 April 1948. The Marshall Plan pumped 13 billion US dollars into the European economy, 10% of which went to West Germany. The aid was also offered to the countries of the emerging Eastern Bloc, but their governments rejected it under Soviet pressure. The Marshall Plan still has a very good reputation, especially in Germany, because an economic boom lasting twenty years began in 1950. The extent to which the Marshall Plan caused or merely facilitated the German economic miracle remains a matter of debate.