Rebuilding Europe Giant Reborn. Jump Starting Europe In 1947, the Americans started pumping billions into Western Europe. The effect was immediate. Europeans.

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Presentation transcript:

Rebuilding Europe Giant Reborn

Jump Starting Europe In 1947, the Americans started pumping billions into Western Europe. The effect was immediate. Europeans borrowed $ from the US and used it to rebuild their factories. The goods were sold to the Americans and to other nations. The profits were then used to redevelop even further.

“Economic Miracle” Unprecedented economic growth in European history Europe entered period of rapid economic progress lasting into late 1960s. By 1963, western Europe produced more than 2.5X more than before the war.

“Economic Miracle” France Combined flexible planning and a “mixed” state and private economy to achieve most rapid economic development in its history. Jean Monnet: economic pragmatist and architect of European unity. France used Marshall Plan aid money and the nationalized banks to funnel money into key industries, several of which were state owned.

Political Reconstruction Europe Reconditioned

West Germany In 1949, Konrad Adenauer, as leader of the Christian Democrats, began long, highly successful democratic rule. Under Adenauer, Germany was accepted as a “peaceful” nation and the Christian Democrats became West Germany’s majority party for a generation

France In 1944, General Charles De Gaulle returned to France and began to rebuild France as the Fourth Republic By 1946 he resigned over the development of too much power in the Parliament. For the next few years the non – Marxist socialists and Catholic based conservatives The left leaning Fourth Republic embarked on a number of socialist policies Nationalization - banks, insurance companies, public utilities, coal mines, and the Renault auto company. Britain followed same trend

Great Britain By the end of the war people in Britain were anxious to rebuild a new nation. In the 1945 election Clement Attlee, the socialist Labour party leader, defeated Winston Churchill and the Conservatives. Attlee moved to establish a “welfare state.” Many industries were nationalized The gov’t provided each citizen with free medical service All this was paid for by increased taxes for the middle and upper classes.