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The Economic and Political Reconstruction of Europe 22.110-111 The Problem Ruined industry Disrupted infrastructure Economic/political collapse of the colonial system Fear of communism, yet a reluctance to depend on the U.S. The Answer: The Marshall Plan The U.S., with its industrial/economic strength, would give financial aid to rebuild Europe. Coordinated by the Office for European Economic Cooperation in Paris The Result Unprecedented economic growth for over 25 years Greater economic cooperation between West European states Biggest improvement: West Germany Least improvement: Great Britain Increased immigration to met labor demands The Growth of the Welfare State In spite of the success of post-war capitalism, governments continued the trend of nationalizing key industries and increasing social welfare programs. It was accepted policy of both left and the right in each nation that the government must be involved in the economy to assure that another Great Depression did not occur. A Political Survey of Western Europe Common elements in all countries included: Social legislation Nationalizing of industries Economic planning involving industry, government, and labor Pragmatic as opposed to ideological politics: Eurocommunism A broadening of suffrage A loss of colonial holdings “proportional representation” in new democracies (West Germany, Italy) Great Britain Labour Party (“leftish”) becomes an equal competitor with the Conservative Party Nationalization Britain, at it’s zenith in the late 1800’s, was now in a relative state of decline. Northern Ireland: “The Troubles” France The Fourth Republic much like the Third in structure: National Assembly had the power The problem of collaboration Communists (left), Socialists (not quite as left), and the Popular Republican Movement (Catholic progressive, centrist) were the major parties until the Communists were expelled in 1947. Jean Monnet France Colonial problems in Indochina, Algeria (Algerian War 1954-1962) Charles De Gaulle and the Fifth Republic Greater executive power Stabilized the country West Germany A federal republic with a parliamentary style government. Christian Democrats (moderate) and Social Democrats (left) were the main parties with the former ruling form 1949-1969, the latter from 1969-1982. Social Democrats, while abandoning Soviet communism, extend the olive branch to the USSR and East Germany West Germany Willy Brandt Konrad Adenauer Italy Abolishment of the Savoy monarchy Parliamentary democracy Christian Democrats (moderate) and the Communist Party (left) emerged as the two main parties. Communists were excluded from the cabinet, though they moderated in the 1960’s. Socialists become a force in the 1960’s. Alcide De Gasperi