Franco’s Final Decades: Economic Reform and Regime Crisis
Franco’s Later Years: Economic Boom & Rising Dissent
Economic Transformation and the Stabilization Plan (1957)
After the initial years of Francoism, technocrats, particularly members of Opus Dei, assumed significant posts in Franco’s 1957 cabinet. They aspired to economic integration with Europe, which meant Spain would be exposed to democratic influences. Measures proposed by these technocrats were incorporated into the Stabilization Plan, designed to:
- Curb inflation.
- Reduce government economic controls.
- Bring Spanish economic policies and procedures in line with European standards.
During that decade, Spain’s industrial production and standard of living increased dramatically. The effects were profound: foreign investment poured into the country, attracted by low production costs and the absence of trade union freedom. At the same time, tourism took off, and within a few years, Spain became the world-leading provider of beach holidays. Emigration to new industrial areas also led to a rural exodus from the less developed rural areas of Spain. However, the commercial opening, coupled with the low competitiveness of the Spanish economy and the great need for capital goods and raw materials, produced a notable, chronic deficit in the balance of trade.
Social Change and Political Consequences
Rapid economic development had significant political consequences. It resulted in a better-educated urban working class, and the unprecedented degree of foreign cultural influence had a marked impact on Spanish society. All of these factors contributed to an increasing level of dissatisfaction with the restrictions that Franco had imposed. These restrictions were increasingly seen as impediments to further growth and modernization.
Growing Opposition to the Franco Regime (1960s)
Technocrats had hoped that greater economic prosperity would eliminate hostility toward Francoism. However, the tension between an increasingly dynamic Spanish society and the oppressive regime that governed it resulted in growing domestic opposition throughout the 1960s. The expanding industrial labor force became increasingly militant. Workers organized clandestine commissions and recurrent strikes and bombings. In addition, regional discontent was giving rise to escalating violent protests in the Basque Country.
Liberal priests responded with enthusiasm to the Second Vatican Council and were also vocal in their attacks on the oppressive aspects of Francoism. The unrest of the mid-1960s did not seriously threaten Spain’s stability. Nevertheless, Franco felt the regime was sufficiently secure and economically booming for a slight loosening of his authoritarian rule.
Intensified Violence and Unrest in Franco’s Final Years
Increasing violence and unrest marked the closing years of Franco’s regime. There was a significant conflict between those who sought to liberalize the regime and those with a “bunker mentality” who resisted reforms. Labor agitation heightened, and freedom of expression and assembly were suspended, making Spain appear to be returning to the repressive conditions of the 1940s. The remaining years of Franco’s rule saw periods of intensified opposition, to which the government responded with harshly repressive measures that merely served to inflame the resistance, leaving the regime in a state of constant turmoil.
The most virulent opposition to the regime came from the revolutionary Basque nationalist group, ETA, which used terror tactics and assassinations to gain recognition. Their most daring act was the assassination of Carrero Blanco, Franco’s prime minister.
Succession and Mounting Crisis (1974-1975)
Conflicts between the reactionary elements of the regime and those willing to open the door to reform had plagued Carrero Blanco’s government. These conflicts continued under his successor, Carlos Arias Navarro, who promised liberalizing reforms, including the right to form political associations. However, diehard Francoists on the right condemned Arias Navarro’s initiatives.
Opposition to the regime mounted on all sides in 1974 and 1975. Labor strikes spread across the country. Universities were in a state of turmoil as the popular clamor for democracy grew more strident. Terrorist activity reached a level that prompted the government to place the Basque Region under martial law. By the time of Franco’s death, Spain was in a chronic state of crisis.