Marshall Plan & Benelux: Post-War European Recovery

The Marshall Plan

The Marshall Plan, formally known as the European Recovery Program, was announced by then-Secretary of State George Marshall in a speech at Harvard University on June 5, 1947.

European hardship and financial inability to buy American products necessitated this plan, which required prior coordination of European countries for its implementation. A conference was held in Paris in June-July 1947, and, after much hesitation, the USSR attended. However, Moscow declined the offer and soon forced its satellite countries to do the same, claiming that the plan was a tool of imperialism and American hegemony.

Despite a campaign by the Communist Party, sixteen countries accepted the aid and met at a conference in Paris in September 1947. The Conference had three objectives:

• Prevent European insolvency, which would have had dire consequences for the U.S. economy.
• Prevent the spread of communism in Europe.
• Create a structure that favored the establishment and maintenance of democratic regimes.

The communist coup in Prague in February 1948 precipitated the approval of the Plan by the U.S. Congress in April 1948. That same month, the OEEC (Organization for European Economic Cooperation) was created to distribute and manage the assistance.

It is estimated that the plan provided a total of $13 billion in U.S. assistance between 1947 and 1952. The plan's success was essential for the economic recovery and the establishment of democratic regimes in Western Europe.

Franco's Spain, which did not meet the requirement for democracy, was excluded from the Plan, which further hindered the country's slow recovery after the Civil War.

The Benelux

Benelux refers to the customs and economic union of Belgium, the Netherlands, and Luxembourg. It also indicates the historical region comprising the countries that formed the Kingdom of the Netherlands.

In 1944, during World War II, the Netherlands, Belgium, and Luxembourg agreed to abolish customs duties on their common borders and set common tariffs for goods from outside the union. This free trade policy was inspired by the failure of protectionist policies implemented during the 1930s, following the crisis of 1929.

On September 5, 1944, the treaty was signed in London, where the three governments were in exile. The treaty's entry into force was scheduled for January 1, 1948, allowing three years for the reconstruction of each country.

The treaty of the Benelux Customs Union established the free movement of persons, goods, and services.