European Recovery Program (ERP)

1. European Recovery Program(ERP) First announced on June 5, 1947 Secretary of State George C. Marshall A United States program for economic aid for Europe after WWII.

2. Why was it needed? • World War two covered more territory than in WWI. • Countries were left in ruins. Many civilians had been left homeless. • Most of the country's agricultural was devastated. • Railways, bridges and roads were destroyed. Which left all the European Countries isolated from each other. • The war also left Europe's treasuries exhausted.

3. What the Plan intended to do • In order to help Europe recover from the war three things needed to be done. 1. An increase in European agricultural and industrial production. 2. Re-establishment of sound currencies, budgets, and finances in individual European countries. 3. Stimulation of global trade between European countries and among Europe and the rest of the world. • Stop the spread of Communism.

4. How to begin • The European countries who were offered help had to agree upon a plan to be approved by the American Government. • 16 countries accepted our offer. • July 12, 1947 a conference of the different countries met in Paris. • Established the Committee of European Economic Cooperation (CEEC). • The final report called for a four-year program to • promote production, create internal financial stability, extend economic support among the involved countries.

5. U.S Response • The State department would accept the proposals of the CEEC on several different conditions. The participating countries: • Must make specific commitments to fulfill production programs; take immediate stets to create financial stability; express a determination to reduce trade barriers; consider alternate source of dollar credits; give a formal recognition to their common objective and take responsibility attaining them; and establish and international organization to act as a coordinating agency to implement the program.

6. Congress passes the bill • April 3, 1948 the Economic Cooperation Act was made into law. • Congress authorized $5 Billion to be given to the ERP. • Over the next four year over $13 Billion would be spent under the plan.

7. Programs set up by the Plan • U.S Economic Cooperation Administration (ECA) • Provided dollar assistance to Europe to purchase commodities-food, fuel, and machinery. Gave funds for certain projects. • The European-run organization • Insured the participants fulfilled their joint obligations to adopt policies encouraging trade and increased production.

8. What the Marshall Plan did • Greece • Modernize industries, improve their agriculture, build power plants, and roads. • Ireland • Between 1948 and 1951 received about $148 millions. Agricultural projects, livestock improvements, education, state building programs, and transportation. • Turkey • Received $353 million in economic and military assistance. • Germany • The Marshall Plan help Germany to find political union and to be peacefully accepted by other European countries. • Sweden • Received $120 million from the ERP. Buy raw materials and produce goods. • Norway • Received $256 million. No country received more aid through the ERP. Investments in the aluminum industry, and several mines were modernized.

9. The End of the Plan • By 1951 industrial production for all countries was 41% above the 1938 level. • Trade within Europe has doubled since 1947. • The spreading of communism in Europe was no longer a threat. Communism had declined almost one-third between 1946 and 1951. • Came to an end in December 1950