The Marshall Plan emerged in the aftermath of World War II, targeting the severe economic distress faced by Western European nations. Launched in 1948 under the leadership of Secretary of State George C. Marshall, the program sought to rebuild war-devastated regions, remove trade barriers, modernize industry, and prevent the spread of Soviet communism by stabilizing economies. By December 31, 1951, the United States had disbursed more than $13.3 billion, a significant sum that played a crucial role in revitalizing economies across the continent.

Countries such as France, Italy, and West Germany received the largest allocations. These investments resulted in remarkable economic recovery, with GDP growth achieved in several nations. The funds were utilized for infrastructure projects, such as rebuilding roads and railways, and stimulating industrial production. The aid not only helped in immediate recovery but also laid the groundwork for long-term economic partnerships among European nations.

The conclusion of the Marshall Plan marked the end of an era of direct financial assistance from the U.S. to Europe. While the aid ceased, the relationships forged through the program continued to foster cooperation, leading to later European integration efforts, including the formation of the European Economic Community. Ultimately, the Marshall Plan is often credited with creating a strong foundation for the post-war recovery and maintaining stability in Western Europe during the Cold War.