Franco’s Decree: Abolishing Basque Economic Concert (1937)
Franco’s Decree: Elimination of the Economic Concert
This document addresses the elimination of the Economic Concert in Biscay and Gipuzkoa. It is a legal text, specifically a law, written in 1937 by Francisco Franco at the end of the Civil War in the Basque territories. As an official, first-level text, its intended audience is all citizens.
Following the abolition of the Basque territories’ fueros (charters) in 1876, the Basque people were granted the Economic Concert. Although losing the fueros meant a loss of autonomy and independent legislation, the Economic Concert allowed Basques to retain certain privileges. However, this text represents Franco’s elimination of those privileges. By the time this document was written, hostilities in the northern area of the Civil War had ceased, marking the end of the war on the northern front. This significantly altered the situation in the Basque Country. At the war’s outset, the Basque Country was divided: Alava and Navarre supported the military uprising, while Gipuzkoa and Biscay remained loyal to the Republic.
The Basque Country was quickly conquered for several reasons. The region possessed iron factories crucial for weapon production, which Franco sought to control for his benefit. Furthermore, Franco enjoyed international support. Nazi forces destroyed Basque cities like Gernika and Durango, with similar actions carried out by Italian brigades.
The Economic Concert was a privileged system of tax collection, allowing Basque Country citizens to pay lower taxes. The text distinguishes between Navarre, which remained loyal to Franco, and the Basque provinces of Alava, Gipuzkoa, and Biscay. These three territories can be further divided: Alava supported Franco’s coup, while Gipuzkoa and Biscay, deemed “traitor provinces” by Franco, opposed him and supported the democratically elected Republic. Franco’s intention was to abolish the Economic Concert for these “traitor provinces” while preserving it for Alava and Navarre. The “Diputaciones” (provincial councils) previously controlled the Basque Country’s economy, but their role was diminished with the elimination of the Economic Concert.
Overall, Franco implemented a policy of repression against the Basque Country, particularly targeting the Basque language. Its use was largely forbidden, especially in public. Consequently, opposition to the regime quickly arose, sometimes led by priests who found Franco’s policies illogical, such as the prohibition of the Basque language. Franco even exiled some priests and replaced them with foreign priests to suppress the use of Basque. Despite the elimination of the Economic Concert, it did not ultimately deter the Basque Country’s future industrial development, which continued after the war once the situation stabilized.