Postwar Spain: From Autarky to Democracy (1939-1975)
Economic and Social Developments (1939-1959)
Postwar Autarky
In 1939, Spain was a devastated country. The population had been decimated, and hunger and extreme poverty were a daily reality for many. The Franco regime’s solution to the economic hardship was autarky, an economic policy based on self-sufficiency and state intervention, similar to models in Mussolini’s Italy and Hitler’s Germany.
State interventionism spread throughout the economy. The state controlled agricultural prices, industry, and foreign trade. The Instituto Nacional de Industria (INI) was created in 1941 to manage the struggling Spanish industry.
A Major Economic Failure
The postwar years saw a significant economic decline. Agricultural and industrial production collapsed, and the primary sector again exceeded 50% of national income. Scarcity and government intervention led to a thriving black market and widespread corruption.
The situation was worsened by Spain’s international isolation due to its alliance with the Axis powers during World War II.
The ’50s: The End of Autarky
The failure of autarky led to a shift in economic policy in the early 1950s. A partial liberalization of prices and trade was implemented, and food rationing ended in 1952. These measures brought some economic expansion, and by 1954, per capita income exceeded that of 1935.
The Cold War and the change in American foreign policy led to the arrival of U.S. economic aid, which facilitated industrial development. However, high inflation and social unrest highlighted the need for structural reforms.
In 1957, Franco allowed a group of technocrats from Opus Dei into the government. They designed the Stabilization Plan of 1959, marking a turning point in economic policy.
Political Developments (1959-1975)
The Political Stagnation of the Sixties
Despite economic and social changes, the 1960s were characterized by political stagnation. However, several developments would later have significant consequences:
- The renewal of the Catholic Church at Vatican II led to a growing distance between the Church and the Franco regime.
- Resurgence of nationalist tensions and the emergence of ETA terrorism.
- Increased labor disputes, with demands shifting from labor issues to political freedoms.
The regime’s response to dissent remained repressive. In 1963, Julian Grimau, an underground Communist Party member, was executed for crimes committed during the civil war. In 1962, the Munich conspiracy, where exiled Spanish politicians called for Spain’s exclusion from the EEC until democracy was established, sparked a major scandal.
The regime implemented minor legislative changes, such as the 1966 Press Law and the State Act, which did not alter its dictatorial nature.
In 1969, Franco appointed Juan Carlos de Borbon, grandson of Alfonso XIII, as his successor “as King.”
Growing Opposition
The late 1960s and early 1970s saw a rise in opposition, particularly in factories and universities. The regime responded with repression, with the Political-Social Brigade using torture and the Court of Public Order trying opponents.
ETA’s first attack occurred during this period. The regime’s indiscriminate repression led to increased social support for the group. The 1970 Trial of Burgos, where nine ETA members were sentenced to death, sparked international protests and highlighted the brutality of the Franco regime.
Two tendencies emerged within the regime: the “openness” faction, advocating for small reforms, and the “bunker”, opposed to any change.
In 1973, Carrero Blanco, a hardliner, was appointed Prime Minister. On December 20, 1973, ETA assassinated Carrero Blanco, dealing a blow to the aging Franco.
The Last Moments of Franco’s Life
The final years of Franco’s rule were marked by several events:
- Confrontation with the Church reached new heights, with the Vatican threatening to break the Concordat and excommunicate Franco if he expelled the Bishop of Bilbao.
- In September 1975, five militants of the FRAP and ETA were executed, sparking international protests.
- Spain ceded Western Sahara to Morocco and Mauritania after the Green March organized by King Hassan II of Morocco.
Franco died on November 20, 1975, ending a long period of dictatorship in Spain.
Economic and Social Developments (1959-1975)
The Stabilization Plan of 1959
Designed by Opus Dei technocrats, the Stabilization Plan aimed to liberalize the economy, ending the autarkic and interventionist period. It involved cutting public spending, reducing state intervention, and opening the economy to foreign trade and investment.
From 1961, Spain experienced rapid economic growth, fueled by reduced deficits, foreign investment, and economic liberalization.
The Economic Development of the Sixties
The period 1961-1973 saw rapid growth in the industrial and service sectors. Foreign investment, attracted by low wages, flooded the country. Industrial development led to intense rural-urban migration and migration to Europe.
Spain achieved a surplus in its balance of payments, with tourism, foreign investment, and remittances offsetting the trade deficit.
The government’s Development Plans, implemented in 1963, had limited success in guiding economic growth. Regional imbalances persisted.
The period 1961-1973 was marked by significant economic development within a broader context of European and global expansion.
The Great Social Changes of the Sixties
The 1960s witnessed rapid social change in Spain. Key features included:
- Massive rural migration to cities and Western Europe.
- Strong population growth.
- Inadequate public services, particularly in education and healthcare.
- Housing deficit and the emergence of new neighborhoods lacking basic facilities.
- The rise of consumer society, with widespread use of appliances, television, and cars.
- A new mindset among younger generations, challenging traditional values and the Church’s influence.
The Opposition to the Franco Regime
The Republic in Exile
Republican leaders who fled Spain in 1939 formed a Republican government in exile, hoping for an Allied intervention to end the Franco dictatorship. Their hopes were dashed when Spain joined the UN in 1955.
The Anti-Franco Guerrilla
Republican fighters formed guerrilla groups, known as maquis, in various regions. Guerrilla activity intensified after World War II but declined after the PCE renounced armed struggle in 1948.
The Internal Opposition in the Postwar Period
The repression of the war and postwar years dismantled the left-wing opposition. Early strikes were harshly repressed.
The First Social Protest and the University Crisis of 1956
The 1951 tram boycott in Barcelona marked the first mass protest against the Franco regime. University unrest culminated in the 1956 incidents at the Complutense University of Madrid, signaling the emergence of a new generation opposed to the dictatorship.
The Opposition Parties and Trade Unions
The PCE emerged as the main opposition party, while the PSOE remained weak and divided. The Workers’ Commissions (CCOO), founded in 1962, became a significant force in the labor movement.
The Growing Struggle of the Sixties and Seventies
Social changes and Franco’s declining health led to increased opposition activity. Various movements converged:
- The labor movement, led by CCOO and supported by the PCE, shifted from labor demands to political awareness.
- Nationalist movements gained strength, with ETA increasing its terrorist activities.
- The student movement spread protests, influenced by international youth movements.
- Catholic movements critical of the Franco regime emerged, collaborating with opposition parties and the labor movement.
These movements created a broad social network of opposition that would play a crucial role in the transition to democracy.
The Political Transition
After Franco’s death, Juan Carlos I became king, initiating a complex transition from dictatorship to democracy. This process has been praised for its low level of violence.
The Political Forces on the Scene
The Francoists
The Francoist forces were divided between the “bunker”, opposed to any change, and the “openings”, advocating for controlled reforms. Adolfo Suarez emerged as a key figure in the latter group.
The Opposition Forces
The liberal right-wing forces were weak. Nationalist forces, such as Democratic Convergence of Catalonia and the Basque Nationalist Party, gained prominence. The Communist Party of Spain (PCE), led by Santiago Carrillo, was the most organized opposition party. The PSOE, under Felipe González and Alfonso Guerra, emerged as a moderate leftist party.
CCOO was the most powerful union, while the UGT was reorganizing.
Disagreements between the PCE and PSOE prevented a unified opposition front.
The First Moments of the Reign of Juan Carlos I: Arias Navarro’s Government (November 1975-July 1976)
The king initially kept Arias Navarro as Prime Minister. The government’s failure to implement credible reforms and its repressive response to protests led to its dismissal in July 1976.
The Suarez Government and the Political Reform Act
Adolfo Suarez was appointed Prime Minister. In September 1976, he presented the draft Law for Political Reform, initiating the dismantling of the Franco regime. Suarez also established discreet contacts with the opposition.
The extreme right and terrorist groups plotted a military coup. Suarez appointed Lieutenant General Gutierrez Mellado as Vice President to control the military.
Despite these threats, the Political Reform Act was approved by the Cortes in November 1976.
Progress of the Opposition
The opposition gradually emerged from hiding. The PSOE held its XXVII Congress in Madrid, and Santiago Carrillo gave a clandestine press conference. A popular referendum in December 1976 overwhelmingly approved the Political Reform Act.
The opposition began to support the reform process, accepting that the transition to democracy would not occur through a complete break with the Franco regime.
The Key Year: 1977
The reform process faced threats from both the extreme right, which sought a military coup, and terrorist groups like ETA and GRAPO.
The week of January 23-29, 1977, saw a series of violent events, including the killing of five labor lawyers in Atocha. A massive peaceful demonstration in Madrid showed the public’s desire for a peaceful transition.
Suarez legalized the PCE in April 1977 and granted amnesty to political prisoners. The first democratic elections since the Second Republic were held in June 1977.
The Union of Democratic Center (UCD), led by Suarez, won the elections. The PSOE became the second largest party, followed by the PCE and the People’s Alliance.
Suarez’s new government faced the challenges of drafting a constitution, tackling terrorism, and addressing the economic crisis.
The Moncloa Pacts, signed in October 1977, were a series of measures to address the economic difficulties.
The Constitutional Process
The Cortes became Constituent Cortes and elected a Constitutional Commission. Seven members, known as the “fathers of the constitution”, drafted the text, emphasizing consensus and ambiguity to accommodate different political forces.
The Constitution was approved by the Cortes and in a referendum on December 6, 1978, with 87.87% of votes in favor.
The Autonomic Process
The Suarez government initiated the autonomic process before the adoption of the Constitution, restoring the Generalitat in Catalonia and establishing the General Basque Council. Pre-autonomous agencies were created for other regions.
The UCD promoted the generalization of regional autonomy, known as “coffee for all.”
Contents of the Constitution
The Constitution defines Spain as a social and democratic state of law, with national sovereignty residing in the people. It establishes a parliamentary monarchy and recognizes the right to autonomy of nationalities and regions.
Title I outlines individual and social rights. The only modification to date was made in 1992 to grant voting rights in municipal elections to EU citizens residing in Spain.
The Constitution establishes the separation of powers, organizing the Cortes (legislative), the government (executive), and the judiciary. It also creates a Constitutional Court to protect the Constitution and fundamental rights.
Title VIII addresses the territorial structure of Spain, allowing for the formation of autonomous communities with their own Statutes of Autonomy.
Democratic Governments and European Integration
UCD’s Second Term and the End of the Suarez Government (1979-1981)
Suarez’s UCD won the 1979 elections. The PSOE, under Felipe González, shifted towards moderate leftism.
A political crisis developed due to several factors, including ETA terrorism, military unrest, the end of consensus, and internal divisions within UCD. Suarez resigned in January 1981.
The Coup of 23-F
During the investiture vote for Calvo Sotelo, a group of civil guards led by Lieutenant Colonel Tejero entered the Cortes. Milans del Bosch and Alfonso Armada were also involved in the coup attempt.
The coup failed due to lack of support from the army and the King’s address to the nation, upholding the constitutional order.
The Last Government of UCD: Calvo Sotelo (1981-1982)
Calvo Sotelo’s government was marked by the breakdown of UCD, the adoption of the Divorce Act, and the rapeseed oil poisoning scandal. Spain joined NATO in May 1982.
The PSOE, led by Felipe González, won a landslide victory in the October 1982 elections.
Socialist Governments of Felipe González (1982-1996)
The first socialist government (1982-1986) implemented an economic stabilization plan and industrial restructuring. It also faced ETA terrorism and reformed the army.
Spain joined the European Economic Community in 1986. González reversed his stance on NATO and campaigned for Spain to remain in the alliance, winning a referendum on the issue.
The second term (1986-1989) saw strong economic growth and the development of a welfare state. However, widening wealth gaps led to a general strike in 1988.
The third term (1989-1993) was marked by the Barcelona Olympics and the Seville Expo. However, the economic crisis, corruption scandals, and the GAL scandal tarnished the government’s image.
The fourth term (1993-1996) saw continued economic difficulties and scandals. González called elections in 1996 after losing support from Convergence and Union.
The PP Government (1996-2000)
Jose Maria Aznar‘s PP government implemented orthodox economic policies, focusing on meeting the convergence criteria for joining the Euro. The economy recovered, and unemployment fell.
The assassination of Miguel Angel Blanco in 1997 sparked a significant popular reaction against ETA. The government adopted a tough stance against Basque nationalism.
The Lizarra-Estella Pact of 1998 and a subsequent ETA ceasefire failed to produce lasting peace.
The 2000 elections marked the peak of the PP’s power, with Aznar securing an absolute majority in the Cortes.