Franco’s Spain: Repression, Neutrality, and Economic Shifts
Franco’s Early Repression and Control
The early years of Franco’s regime were marked by severe repression as he sought absolute political control and to institutionalize the Nationalist victory. Society was divided between the ‘patriots’ and those who had supported the ‘Godless anti-Spain’. Many Spaniards fled into exile, while those who remained faced imprisonment. An atmosphere of fear prevailed, and the population was willing to accept any system that could restore peace and stability. During this initial phase, the military played a major role. Franco invalidated all laws of the Second Republic that offended his political and ethical beliefs. He banned civil marriage, made divorce illegal, and made religious education compulsory. Most of the land nationalized under the Republic’s agrarian program was returned to its original owners. The state destroyed trade unions and replaced them with Vertical Syndicates.
From 1939 to 1945, the Falange’s fascist ideology and symbols played a significant role in the New State. The Falange emblem was displayed at the entrance of every town, its anthem was sung on official occasions, and the blue fascist-style shirt became a common sight. The Blue Division was sent to aid the Nazis.
Spain’s Neutrality and Shifting Alliances
The Falange controlled the government propaganda machine, with their main power base in controlled trade unions and syndical organizations. Weakened by the war, Spain could not afford to become involved in the European conflict. Franco declared Spain neutral at the start of World War II, but his sympathies lay with the Axis powers. Spain altered its policy of neutrality to support the Germans when their offensive seemed invincible, permitting German forces to be provisioned in Spanish ports. The German invasion of the Soviet Union in 1941 presented Franco with the chance to participate in the conflict without a declaration of war, seeking revenge for the Soviet Union’s aid to the Republicans (Blue Division).
As the war turned in favor of the Allies in 1941, Spain replaced its pro-Axis policy with a genuinely neutral stance. Facing international ostracism, Franco began to downplay the fascist aspects of his regime after realizing the Allies would win. He introduced elements of what he called democracy: the raised-arm salute was reduced, and his public presence decreased. The Falange retained influence, but less than before.
International Ostracism and the Cold War
By the 1950s, the Church had become the most powerful influence on the regime. Spain was ostracized by the Allies at the end of the war and denied membership in the UN due to its assistance to the Axis powers. In 1946, a UN resolution expressed the most severe post-war censure of Franco’s regime. Spain was excluded from the Marshall Plan, with only Argentina providing economic support.
The end of ostracism came with the effects of the Cold War. United States policymakers began to recognize the strategic importance of the Iberian Peninsula. They realized that ostracism had failed and that Franco’s regime was stronger than ever. The U.S. government took steps to normalize its political and economic relations with Spain, ending the period of isolation. President Truman signed a bill that appropriated $62.5 million for aid to Spain, and diplomatic relations were restored in 1951. The Concordat provided recognition of the Church by Franco’s government. The Pact of Madrid symbolized the Spanish regime’s rehabilitation, allowing the U.S. to establish military bases in Spain for 10 years.
Autarky and Economic Struggles
Franco’s economic policy was based on autarky and state interventionism. The state controlled wages, prices, and agricultural yields, with the objective of self-sufficiency by cutting imports. This program benefited big landowners and industrialists, as well as traditional structures and technology. However, Spain failed, and production fell drastically. Starvation wages worsened inflation. By the end of the decade, Spain had the lowest economic level in Europe. Franco’s collaboration with the Axis powers during World War II deprived Spain of the benefits of the Marshall Plan, leading to low agricultural productivity and food rationing. Spain was ruined.
The U.S. needed Spain’s strategic location against the Soviet Union, which led to significant improvements in Spain. In the 1950s, economic liberalization increased industrial production, although the Falange resisted capitalism. In 1955, Spain was approved for membership in the UN. President Eisenhower visited Franco in Spain, improving Spain’s image. The influence of the Falange was evident in the economic field. In 1939, a program of reconstruction based on self-sufficiency was initiated.