Formula Two first started in 1948 when the FIA established it as a smaller and cheaper complement to the Grand Prix cars of the era. In fact, Formula One was so expensive that in 1952 and 1953 all championship Grand Prix races were run with Formula Two cars.

A new 1.5 litre F2 was introduced in 1957 with entries from Ferrari, Porsche, and Cooper. F2 became 1 litre from 1964 to 1966. In 1967 the FIA introduced a European F2 championship, won by Jacky Ickx. At this time many F1 drivers also competed regularly in F2.

BMW engines dominated in the early years until 1976 when pure race engines were permitted which led to powerful 300bhp V6 engines from Renault and later Honda.

The European Championship ran from 1967 until 1984, and every champion progressed to Formula One, some extremely successfully including MSV Chief Executive Jonathan Palmer, who triumphed in 1983.