After World War II, European leaders brought together Russia, England and America. They formed Allied force with other countries and eventually Axis force was defeated. However, the war time unity among the Allied powers was lost. They failed to come to an agreement about the terms and conditions to be imposed on Germany. Russia wanted to have a Government in Germany where communists would take lead. But America and England favored otherwise. In such a difference of opinions, Russia and western powers took different steps and this resulted in creation of two German states, namely Federal Republic of Western Germany and German Democratic Republic in the East. 

The gradual deterioration in the relationship between Russian and western powers brought European leaders together and developed the idea of greater cooperation. The chief objective behind the cooperation was to strengthen politically, economically and socially. The first step towards economic cooperation took place after Benelux Customs convention of 1944. The Signatory Governments of this convention agreed upon free trade. Moreover, to finance European countries, America sponsored the ‘Economic Cooperation Act’ in 1948 and in 1960 this organisation was transformed into ‘Organisation for European Economic Cooperation and Development’. 

The Cold war of America and Russia also brought European countries together. The North Atlantic Treaty Organisation (NATO) formed on April 4,1949 was also a step that brought together America, Britain, France, Italy, Canada, Belgium, Denmark, Luxembourg, Norway, Portugal, Iceland and Netherlands. It was a defense organisation against the Soviet Bloc.