Postwar

also his age (he was born in 1872).

At first sight it may seem rather odd that so much of the rehabilitation of postwar Europe was the work of men who reached maturity and entered politics many decades before. Churchill, who first entered Parliament in 1901, always described himself as a ‘child of the Victorian Age’. Clement Attlee, too, was a Victorian, born in 1883. But it is perhaps not so very surprising after all. In the first place such older men were rather unusual in surviving politically and ethically unscathed from thirty years of turmoil—their political credibility enhanced, as it were, by their scarcity value. Secondly, they all came from the remarkable generation of European social reformers who reached maturity during the years 1880-1910—whether as socialists (Blum, Attlee), liberals (Beveridge, or the future Italian President Luigi Einaudi, born in 1874) or progressive Catholics (De Gasperi, Adenauer). Their instincts and interests were very well suited to the post-war mood.

But thirdly, and perhaps most important, the old men who rebuilt Western Europe represented continuity. The vogue between the wars had been for the new and the modern. Parliaments and democracies were seen by many—and not just Fascists and Communists—as decadent, stagnant, corrupt and in any case inadequate to the tasks of the modern state. War and occupation dispelled these illusions, for voters if not for intellectuals. In the cold light of peace, the dull compromises of constitutional democracy took on a new appeal. What most people longed for in 1945 was social progress and renewal, to be sure, but combined with the reassurance of stable and familiar political forms. Where the First World War had a politicizing, radicalizing effect, its successor produced the opposite outcome: a deep longing for normality.

Statesmen whose experience reached back beyond the troubled inter-war decades to the more settled and self-confident era before 1914 thus had a particular attraction. In the continuity of their person they could facilitate a difficult transition from the over-heated politics of the recent past to a coming era of rapid social transformation. Whatever their party ‘label’, the elder statesmen of Europe were all, by 1945, skeptical, pragmatic practitioners of the art of the possible. This personal distance from the over-confident dogmas of inter-war politics faithfully reflected the mood of their constituents. A post-‘ideological’ age was beginning.

The prospects for political stability and social reform in post-World War Two Europe all depended, in the first place, on the recovery of the continent’s economy. No amount of state planning or political leadership could conjure away the Himalayan task facing Europeans in 1945. The most obvious economic impact of the war was on housing stock. The damage to London, where three and a half million homes in the metropolitan area were destroyed, was greater than that wrought by the Great Fire of 1666. Ninety percent of all homes in Warsaw were destroyed. Only 27 percent of the residential buildings in Budapest in 1945 were habitable. Forty percent of German housing stock was gone, 30 percent of British, 20 percent of French. In Italy 1.2 million homes were destroyed, mostly in cities of 50,000 or more people. The problem of homelessness, as we have seen, was perhaps the most obvious consequence of war in the immediate post-war era—in West Germany and Britain the housing shortage would last well into the mid-1950s. As one middle-class woman expressed it, upon emerging from a Post-War Homes Exhibition in London: ‘I’m so desperate for a house I’d like anything. Four walls and a roof is the height of my ambition.’[19]

The second area of evident damage was in transport—merchant fleets, railway lines, rolling stock, bridges, roads, canals and tramways. There were no bridges across the Seine between Paris and the sea, just one left intact across the Rhine. As a consequence, even if mines and factories could produce necessary goods they could not move them—many European coal mines were working again by December 1945 but the city of Vienna was still without coal.

The visual impact was the worst: many countries looked as though they had been battered and broken beyond any hope of recovery. And it was true that in almost every European country involved in the Second World War the national economy stagnated or shrunk when compared even with the mediocre performance of the inter-war years. But war is not always an economic disaster—on the contrary, it can be a powerful stimulus to rapid growth in certain sectors. Thanks to World War Two the US surged into an unassailable commercial and technological lead, much as Britain had done during the Napoleonic wars.

And indeed, as Allied surveyors soon realized, the destructive economic impact of the war against Hitler was by no means as total as they had first thought, even in Germany itself. The bombing campaign, for all its human costs, had wrought less economic damage than its advocates expected. Little more than 20 percent of German industrial plant had been destroyed by May 1945; even in the Ruhr, where much Allied bombing had been concentrated, two thirds of all plant and machinery had survived intact. Elsewhere, in the Czech lands for example, industry and agriculture thrived under the German occupation and emerged virtually unscathed—Slovakia, like parts of Hungary, saw accelerated industrialization during the war years and actually emerged better off than before.

The dramatically skewed nature of much of the damage, such that it was people and places that suffered terribly while factories and goods were relatively spared, contributed to an unexpectedly speedy recovery after 1945 of core economic sectors. Engineering industries flourished during the war. The UK, the USSR, France, Italy and Germany (as well as Japan and the USA) all emerged with a larger stock of machine tools than they started with. In Italy only the aeronautic and shipbuilding industries suffered serious damage. Engineering firms situated in the North, and thus out of reach of the heaviest fighting during the Italian campaign, did rather well (as they had in World War One), their wartime output and investment more than compensating for any harm they suffered. As for the machine tool industry in what became West Germany, it lost just 6.5 percent of its equipment through war damage.

In some countries, of course, there was no war damage. Ireland, Spain, Portugal, Switzerland and Sweden all remained neutral throughout the conflict. This does not mean that they were not affected by it. On the contrary, most of the European neutrals were intimately engaged, albeit indirectly, in the Nazi war effort. Germany depended heavily on Franco’s Spain for its wartime supply of manganese. Tungsten reached Germany from Portugal’s colonies, via Lisbon. Forty percent of Germany’s wartime requirements in iron ore were met from Sweden (delivered to German ports in Swedish ships). And all this was paid for in gold, much of it stolen from Germany’s victims and channeled through Switzerland.

The Swiss did more than act as money-launderer and conduit for German payments, in itself a substantial contribution to Hitler’s war. In 1941-42 60 percent of Switzerland’s munitions industry, 50 percent of its optical industry and 40 percent of its engineering output was producing for Germany, remunerated in gold. The Buhrle- Oerlikon small arms firm was still selling rapid-fire guns to the Wehrmacht in April 1945. All told, the German Reichsbank deposited the gold equivalent of 1,638,000,000 Swiss francs in Switzerland during the Second World War. And it was Swiss authorities before the outbreak of the conflict who asked that German passports indicate whether their holders were Jewish, the better to restrict unwanted arrivals.

The Swiss authorities, in their defence, had good reason to keep the Nazis friendly. Although the Wehrmacht high command postponed its June 1940 plans for an invasion of Switzerland, it never abandoned them; the experience of Belgium and the Netherlands was a grim reminder of the fate awaiting vulnerable neutral states that got in Hitler’s way. For similar reasons the Swedes also extended their cooperation to Berlin, on whom they were historically dependent for coal. Selling iron ore to Germany was something Sweden had been doing for many years—even before the war half of German iron-ore imports came across the Baltic, and three-quarters of all Swedish iron-ore exports went to Germany. In any case, Swedish neutrality had long been slanted toward Germany out of fear of Russian ambitions. Co-operation with the Nazis—allowing the transit of 14,700 Wehrmacht troops at the start of Operation Barbarossa, as well as German soldiers on leave from Norway passing through on their way home, deferring the draft for Swedish iron mine workers so as to ensure regular deliveries to Germany—was thus not a departure from habit.

After the war the Swiss (though not the Swedes) were initially the object of resentful international suspicion as accomplices to Germany’s war effort; in the Washington Accords of May 1946 they were constrained to offer a ‘voluntary’ contribution of 250 million Swiss francs to European reconstruction, as a final settlement of all claims relating to Reichsbank transactions through Swiss banks. But by that time Switzerland was already rehabilitated as a prosperous island of fiscal rectitude: its banks highly profitable, its farms and engineering industries set to supply food and machinery to needy European markets.

Before the war neither Switzerland nor Sweden had been especially prosperous—indeed they contained significant regions of rural poverty. But the lead they secured in the course of the war has proved lasting: both are now at the top of the European league and have been there steadily for four decades. Elsewhere the path to