Spain Under Franco (1939-1975): Dictatorship, Isolation, and Transition
Spain under Franco (1939-1975)
From Civil War to Dictatorship
Following the Spanish Civil War, a dictatorial regime led by Francisco Franco emerged and lasted until 1975. Similar to fascism, the regime initially suffered severe political and economic isolation after World War II. However, in the context of the Cold War, Franco leveraged his anti-communist stance to become a U.S. ally, although the lack of democracy hindered full integration with the West. Opposition to the regime existed from the beginning and grew over time, but it wasn’t until after Franco’s death that it ultimately ended.
International Political Developments and the Situation
After consolidating power, Franco established an authoritarian rule that was a hybrid of military dictatorship, fascist state, and absolute monarchy. The new state rejected liberalism, democracy, and communism, embracing conservative Catholicism and the principles of the Falange. It abolished the existing Constitution and dismantled previous Spanish institutions and laws.
Franco held all powers: Head of State, Government, Army, and Falange. In 1942, courts were created, but their legislative power was limited to approving laws proposed by the government. Civil and Military Governors controlled the provinces, and Vertical Unions were imposed in the workplace, with mandatory membership under Falange control.
Organizations like the Youth Front and Women’s Section promoted political and ideological indoctrination. The education system enforced the Formation of National Spirit, which included studying Falange principles. However, the ideological and political unity of Nationalist Spain was more apparent than real.
Various sectors or “families” existed within the regime: Army, Church, Falange, Catholics, monarchists, and technocrats (like those from OPUS Dei). Franco skillfully managed these groups and their internal conflicts. Initially, the regime resembled a fascist state with Falangists holding significant power. However, as Germany neared defeat, Franco distanced himself from fascist symbols and reduced the Falange’s presence in the government.
Political and Economic Isolation
At the end of World War II, Spain faced international isolation due to Franco’s support of Germany (e.g., the Blue Division). The Potsdam Conference (1945) even considered military intervention to end the regime. In 1946, Spain was denied entry into the UN, and member countries were advised to withdraw their ambassadors from Madrid. Only Argentina, Portugal, and some Arab countries ignored this recommendation.
This isolation provided an opportunity for anti-Franco guerrillas to increase their activity. The Spanish government responded with nationalist demonstrations in support of Franco. However, the Cold War eventually brought an end to Spain’s isolation. The U.S. saw Franco as a potential ally against communism, and Spain’s value within the Western bloc increased. In 1950, ambassadors returned to Madrid, and in 1953, Spain signed bilateral agreements with the U.S., granting access to military bases in exchange for political, military, and economic aid. In 1955, Spain was admitted to the UN.
Economic Changes
Autarky (1939-1959)
The Spanish economy was devastated after the Civil War and worsened in subsequent years. Due to political reasons, Spain faced an international embargo and could not benefit from the Marshall Plan. This period was marked by hunger, rationing, and a thriving black market.
Franco’s economic policy was based on autarky, characterized by excessive state intervention and limited foreign relations. In agriculture, the National Wheat Service imposed quotas and fixed prices, while the National Colonization Institute aimed to increase irrigated areas.
The industrial sector also experienced strong state intervention. The National Institute of Industry (INI), founded in 1941, focused on establishing basic industries that the private sector couldn’t or wouldn’t develop, particularly in steel and energy. INI also participated in the service sector, with emblematic companies like ENDESA, ENSIDESA, ENASA, SEAT, and IBERIA. The nationalization of the broad gauge railway led to the creation of RENFE.
By the early 1950s, the regime’s economic policies had clearly failed, resulting in lower living standards, increased inequality, reduced purchasing power, and decreased demand. The autarkic model was exhausted and a new economic policy was needed. The government introduced some liberalization measures in 1951, which, along with American aid, brought slight improvement. However, more drastic changes were necessary.
Stabilization Plan (1959)
The Economic Stabilization Plan of 1959 marked a turning point. Technocrats, like Navarro Rubio and Ullastres, took charge of economic policy. The plan aimed to lay the foundation for economic development and included measures such as reducing public and private spending (leading to fewer credits and wage freezes), gradually removing government control over economic activities, and opening the Spanish economy to foreign markets. The state encouraged foreign companies to invest in Spain.
The plan imposed austerity measures on the Spanish population, resulting in reduced overtime, increased unemployment, and fewer credits. Fortunately, Europe’s need for labor provided an escape valve through emigration. The plan’s effects were immediate: reduced trade deficit and inflation, increased foreign exchange reserves, and growth in tourism. These successes, along with a favorable international economic climate, paved the way for a period of strong development that lasted until 1973.
Development Plans (1963-1975)
Following the Stabilization Plan, Spain implemented Development Plans. The first was approved in December 1963, followed by two more (1968-1971 and 1971-1975). These plans, guided by technocrats like Laureano López Rodó, channeled the growth process initiated by the stabilization plan. The planning, based on four-year plans, set binding growth targets for the public sector and indicative targets for the private sector. The third plan was interrupted by the 1973 crisis.
The plans focused on industrialized areas but also promoted industrialization in other cities through the creation of development zones. In addition to the efforts of the Spanish people and a favorable international context, three factors contributed to economic development: tourism, emigration, and foreign investment.
Foreign tourism increased significantly, driven by low prices, good weather, and the rising standard of living in Europe. It stimulated the construction, hospitality, and transportation sectors, introduced new cultural habits and lifestyles, and provided a substantial influx of foreign currency that improved the balance of payments.
Emigration saw over a million Spanish workers move to developed European countries. This alleviated unemployment, particularly in rural areas, encouraged agricultural mechanization, and helped reduce the trade deficit.
Foreign investment, especially from the U.S., was encouraged by the Spanish government. Foreign companies brought in technology and contributed to industrial development, generating high profits. By the early 1970s, Spain was the tenth largest industrial producer globally, with significant output in steel, cement, electricity, cars, and ships. However, it still lacked technological advancement, capital, and energy resources. Traditional agricultural backwardness and regional imbalances persisted.
Socio-Cultural Change
The modernization of the economy transformed Spanish society. Changes in agriculture, including mechanization and reduced labor needs, raised the standard of living for the rural population, although differences with the urban population remained. The working class grew in number and saw significant wage increases, with a notable rise in skilled workers. The urban middle classes (technicians, administrators, civil servants, professionals) also expanded.
Living standards improved for most Spaniards, and a large segment of society joined the consumer society, acquiring goods like refrigerators, washing machines, TVs, and cars. Near full employment and a social security system that guaranteed pensions and healthcare fueled social optimism. Access to education, including university, increased significantly.
Lifestyles and social customs became more European due to increased purchasing power and contact with the outside world through tourism, emigration, and cultural exchanges. Tolerance, moral permissiveness, and religious openness challenged traditional conservatism, which the official discourse struggled to contain.
These changes were more easily embraced by a new generation that was better educated and less affected by the Civil War. Institutions responsible for upholding the regime’s ideology, such as the Youth Front, Women’s Section, Academy of Mandos, Education and Rest, became progressively less effective.
Interestingly, development became part of Franco’s rhetoric. Economic growth was intended to legitimize the regime. However, it had the opposite effect. Social and cultural progress fueled opposition to a political system determined to maintain the Fundamental Principles of the Movement and resist true democracy.
Although Spain had gained a place in the Western world, the lack of democracy prevented closer integration. Entry into the European Economic Community was impossible as long as the dictatorship remained.
Opposition to the Franco Dictatorship
Franco remained in power until his death. Opposition always existed, but it gained strength and coordination only in his final years. In the early postwar period, the defeated forces, mostly in exile, struggled to survive. Their only hope was Allied intervention to remove Franco from power.
Inside Spain, the first dissenting voices came from prominent figures who opposed the unification decree. After the war, a Falangist conspiracy was easily thwarted. Attempts by Don Juan de Borbón and some monarchist generals to persuade Franco to step down and restore a liberal monarchy also failed. Monarchist claims weakened after a meeting between Don Juan and Franco in 1948.
The PCE, which would eventually become the most active opposition force, supported guerrilla activity and organized an invasion of Spanish territory through the Aran Valley in 1944, which was repelled by the army. Guerrilla warfare continued until 1952, after which the PCE shifted its focus to political means.
The opposition managed to embarrass the regime, which overcame international isolation by aligning with the U.S. and securing Vatican support. (After signing the agreements with the U.S. in 1953, Franco reportedly said, “Now I have truly won the war.”)
From 1959 onwards, a period of broader opposition began, with universities as its main stage. A strong anti-Franco movement emerged among students. Leaders of the SEU, the official university union, allowed some positions to be elected by students, opening the door to criticism of the regime. Students eventually rejected the SEU, leading to incidents on campuses. In 1965, attempts to create a democratic union at the Universities of Madrid and Barcelona resulted in widespread unrest, and the government responded with police intervention. Several prestigious professors were expelled for supporting student demands for academic improvements and democratic changes.
Workers
In 1958, the Law on Collective Agreements allowed negotiations on wages and working conditions between elected worker representatives and employers. This led to a wave of labor conflicts. The Collective Dispute Law of 1962 recognized the right to strike, although strikes remained technically illegal. Workers’ committees were formed to organize strikes but were subsequently disbanded. Permanent Workers’ Commissions (CCOO) were then created for each industry branch, with Marcelino Camacho leading the metalworkers’ commission in Madrid. PCE members gradually gained control of the CCOO, effectively creating a parallel union to the official one. During the general strike of 1967, workers in Madrid took to the streets demanding freedom and democracy. The Supreme Court immediately declared the CCOO illegal.
The Church
Following the transformations within the Church after the Second Vatican Council, differences arose between government authorities, the Church, and Rome. These included protests by Basque bishops against the Burgos trials of ETA members, a collective statement by the episcopate in 1971 apologizing for the Church’s role in the Civil War, the appointment of Bishop Tarancón (known for his liberal views) as Primate of Toledo and President of the Episcopal Conference, and the Church hierarchy’s request to revise the Concordat to eliminate the Head of State’s privilege of appointing bishops. Franco may never have fully understood the Church’s changing attitude towards a regime it had once blessed and supported.
Center-Right Groups
Individuals with Christian-liberal ideologies in Spain favored democracy. Some (Gil Robles, Satrústegui, Álvarez de Miranda) met with exiled opposition members in Munich in 1962 (the Munich Conspiracy) and drafted a document calling for regime change. Others, like Areilza, maintained good relations with Don Juan de Borbón. They formed small groups but lacked a broad social base within the regime.
Socialists
Several socialist factions existed. Ridruejo, a former Falangist, founded the social democratic Democratic Action. The PSOE leadership was in exile, but new parties and organizations emerged within Spain, including Tierno Galván’s Socialist Party of the Interior. Groups from Seville (Felipe González) and Bilbao (Nicolás Redondo) gained control of the PSOE at the 1973 Suresnes Congress.
Communists
From the 1960s onwards, under Carrillo’s leadership, the PCE made efforts to infiltrate Spanish society. It was the best-organized opposition party but faced the challenge of its radical ideology, which made it an undesirable ally. Despite softening its message, breaking with Soviet communism, and accepting democratic formulas, it remained marginalized. The PSUC, controlled by the PCE, represented Catalan communists.
Nationalists
. The PNV kept a Basque government in exile. From 59, young nationalist groups began to distance themselves from the PNV, considering moderate. Of them will emerge in 1962 ETA, which ideologically is sliding into a Marxist revolutionary left and 68 start the armed struggle against the Spanish state. The attack against Carrero Blanco was the strongest blow received by the Franco regime.Catalan nationalism was more entrenched than the Basque and need not resort to violence. The parties kept as Democratic Union of Catalonia (Democrat) and Esquerra Republicana (liberal). In 1974 he founded the Democratic Convergence Jordi Pujol, the party called upon to play an important role . The opposition political groups were very numerous. They needed to coordinate their efforts. By December 69 Catalans groups created a joint body. At the national level in July 74 Democratic emerged that coordinated the Board to PCE, CC OO, the Socialist Party of Tierno Galván … and a year later formed the National Platform of Democratic Convergence, which grouped the Socialist Party, Christian Democrats and Social Democrats and left wing groups. Both groups contacted and made public the basic demands to leave the Franco regime and call for political amnesty elections to the Constituent Cortes.