Franco’s Regime: From Autarky to Economic Liberalization
Franco’s Regime: A Deep Dive into Its Political and Economic Evolution
Concentration of Power and Ideology
15.1 The Franco regime was marked by the concentration of power in Franco, anti-militarism, traditionalism, anti-parliamentarism, and anti-liberalism. It exalted fascist symbols, defending national patriotism, Catholicism, and the unions linked to the single party, FET de las JONS.
Six main groups existed within the regime: the army, the Falange, and the Church (Opus Dei) were institutionalized. Monarchists, though not institutionalized, were divided into Carlists and supporters of Don Juan, who deviated from the regime due to the failure to restore the monarchy. Technocrats, often associated with Opus Dei, aimed to modernize the regime and establish a welfare state. Finally, Franco himself formed the core of the system, often referred to as the “bunker.”
The Blue Phase (1939-1945)
The Blue Phase saw a boom in the Falange’s influence, with Ramón Serrano Suñer, Franco’s brother-in-law, as a powerful figure. This period followed a fascist model, articulated by vertical unions like the Youth Front. The first fundamental law, the Labor Law (1938), prohibited the capitalist character of free trade unions. The Law on Courts (2nd Basic Law, 1942) aimed to institutionalize the system by creating corporate courts.
In 1940, Franco abandoned neutrality in World War II for non-belligerence. In October 1940, he met with Hitler in Hendaye. Hitler wanted Spain to declare war on Great Britain, while Franco hoped to recover Gibraltar and parts of North Africa. No agreement was reached, but Franco sent a division of volunteers, the Blue Division, to fight against the Soviets. The Blue Division was withdrawn after the U.S. entered the war, and Spain returned to a neutral stance.
National Catholicism (1945-1957)
Following a confrontation between Carlists and Falangists (the Begoña Incident), Franco removed Serrano Suñer and José Enrique Varela from the government, overshadowing the Falange in favor of Catholics. This marked the beginning of the National Catholicism period (1945-1957).
Spain faced international isolation, with ambassadors withdrawn except for those from Portugal, Argentina, and the Vatican. Spain was excluded from the Marshall Plan and the UN, and France closed its border. In the early 1950s, the anti-communist sentiment allowed for Spain’s international recognition. Ambassadors returned, Spain entered the UN in 1955 and later NATO. The Concordat with the Holy See was signed in 1953, along with an agreement with the U.S.
Fundamental Laws and Political Maneuvering
In 1945, the 3rd Basic Law, the Fuero de los Españoles, was promulgated, defining the Franco regime as an organic democracy and creating a facade of legality. The 4th Basic Law, the National Referendum Act, followed. The 5th Basic Law (1947), the Law of Succession to the Head of State, defined Spain as a Catholic, social, and representative kingdom, with Franco as Head of State for life. An agreement was reached with Don Juan in 1948 for Don Juan Carlos to be educated in Spain.
The wear of Catholics and autarkic policies led to a difficult economic situation. Confrontations between liberal students and Falangists in 1956 had consequences for Falangists Ruiz Jiménez and Fernández Cuesta. Catholic intellectuals called for openness and freedom of opinion. A team working online and nationalist opposition to the regime emerged, which technocrats from Opus Dei used to gain a leading role in 1956.
Economic Policies: From Autarky to Liberalization
The evolution of the regime was marked by economic self-sufficiency, stagnation, and rationing due to isolation. The anti-liberal economy led to ration cards and the growth of a black market.
The policy sought to recover agricultural production, returning expropriated lands to their former owners. Agencies like the National Institute of Colonization, the National Wheat Service (SNT), and the Agricultural Trade Commission (CAT) were created. The regime aimed for self-sufficiency and the development of arms industries. In 1941, the National Industry Institute (INI) was established, promoting basic industries. Light industry was encouraged, along with monopolies and state control of production.
By 1951, autarkic policies caused strikes. In 1957, the U.S. granted credit to Spain in exchange for the establishment of military bases. The arrival of U.S. surplus products eliminated ration cards and the black market, stabilizing prices. Admission to the UN in 1955 brought economic openness.
Economic Stabilization and Liberalization
In 1957, two technocrat ministers, Alberto Ullastres and Mariano Navarro Rubio, adopted liberalizing measures, including tax reform, the abolition of the multiple exchange rate system, entry into the IMF and the OEEC, and wage freezes. The decree-law of New Economic Management sought balanced development and greater international integration, limiting government spending and credit demand to slow inflation, stabilize prices, and reduce imports. It aimed to liberalize foreign trade, reduce state control, and liberalize imports. The Stabilization Plan (1957-1959) reduced domestic demand and inflation and stabilized prices, but it also restricted economic activity and increased unemployment, leading to emigration.