The Organization of European Economic Co-operation was established as a pivotal step towards fostering economic collaboration among European nations in the aftermath of World War II. This initiative responded to the pressing need for economic recovery and stability in Europe, greatly emphasized by the devastation of the war. In 1947, the United States proposed a strategy known as the Marshall Plan, which aimed to provide financial aid to help European countries rebuild their economies. However, to manage and distribute these funds effectively, European nations recognized the necessity for a collaborative approach, leading to the formation of the OEEC in April 1948.

The founding conference took place in Paris, attracting representatives from 16 nations, including the United Kingdom, France, West Germany, and Italy. These nations agreed on mutual cooperation, sharing resources, and promoting free trade. The primary goal was to expedite economic recovery by ensuring that aid from the Marshall Plan was utilized effectively and efficiently across the continent. Oliver Lyttelton, the British Minister of Production, was instrumental in the establishment of the Organization, emphasizing the collective commitment among European nations to overcome the economic challenges ahead.

The OEEC operated by facilitating the coordination of national economic policies, and it helped to stimulate both intra-European trade and investment. In the years following its establishment, the organization played a crucial role in the formation of the European Economic Community, serving as a precursor to the more integrated European Union that would follow in later decades. The OEEC's processes not only laid the groundwork for lasting economic cooperation but also symbolized a strategic shift from wartime competition to peacetime collaboration among European states.