section_path: Economy/Economic history
section_name: Economic history
paragraph_text: Economic history
  
  Capitalism has been dominant in the Western world since the end of feudalism. From Britain, it gradually spread throughout Europe. The Industrial Revolution started in Europe, specifically the United Kingdom in the late 18th century, and the 19th century saw Western Europe industrialise. Economies were disrupted by the First World War, but by the beginning of the Second World War, they had recovered and were having to compete with the growing economic strength of the United States. The Second World War, again, damaged much of Europe's industries.
  
  After the Second World War the economy of the UK was in a state of ruin, and continued to suffer relative economic decline in the following decades. Italy was also in a poor economic condition but regained a high level of growth by the 1950s. West Germany recovered quickly and had doubled production from pre-war levels by the 1950s. France also staged a remarkable comeback enjoying rapid growth and modernisation; later on Spain, under the leadership of Franco, also recovered and the nation recorded huge unprecedented economic growth beginning in the 1960s in what is called the Spanish miracle. The majority of Central and Eastern European states came under the control of the Soviet Union and thus were members of the Council for Mutual Economic Assistance (COMECON).
  
  The states which retained a free-market system were given a large amount of aid by the United States under the Marshall Plan. The western states moved to link their economies together, providing the basis for the EU and increasing cross border trade. This helped them to enjoy rapidly improving economies, while those states in COMECON were struggling in a large part due to the cost of the Cold War. Until 1990, the European Community was expanded from 6 founding members to 12. The emphasis placed on resurrecting the West German economy led to it overtaking the UK as Europe's largest economy.
  
  With the fall of communism in Central and Eastern Europe in 1991, the post-socialist states underwent shock therapy measures to liberalise their economies and implement free market reforms.
  
  After East and West Germany were reunited in 1990, the economy of West Germany struggled as it had to support and largely rebuild the infrastructure of East Germany, while the latter experienced sudden mass unemployment and plummeting of industrial production.
  
  By the millennium change, the EU dominated the economy of Europe, comprising the five largest European economies of the time: Germany, the United Kingdom, France, Italy, and Spain. In 1999, 12 of the 15 members of the EU joined the Eurozone, replacing their national currencies by the euro.
  
  Figures released by Eurostat in 2009 confirmed that the Eurozone had gone into recession in 2008. It impacted much of the region. In 2010, fears of a sovereign debt crisis developed concerning some countries in Europe, especially Greece, Ireland, Spain and Portugal. As a result, measures were taken, especially for Greece, by the leading countries of the Eurozone. The EU-27 unemployment rate was 10.3% in 2012. For those aged 15–24 it was 22.4%.