3 April 1948: Marshall Plan signed into law

On this day in 1948, Secretary of State George Marshall’s European Recovery Program, otherwise known as the Marshall Plan, is adopted.

Ernest Bevin Signs Marshall Plan Document
(Image credit: Hulton-Deutsch/Hulton-Deutsch Collection/Corbis via Getty Images)

In the late 1940s, western Europe faced the daunting task of reconstruction after the devastation of World War II. It was also concerned about the threat of communism: the Soviet Union had established control of central and eastern Europe, while domestic communist parties seemed on the verge of electoral success.

The only two powers capable of keeping Europe out of the Soviet orbit were Britain and the United States. Britain had contributed large numbers of troops to the continent, but was barely solvent, so the primary economic responsibility for saving Europe would fall on America.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri