Spain Under Franco (1959-1975): Transformation and Transition
Spain Under Franco (1959-1975)
The Franco Regime (1959-1975)
Government Formation (1957)
In 1957, on Carrero Blanco’s advice, Franco’s government incorporated members of Opus Dei, representing a modern technocratic power connected to big business and politically conservative. Figures like Laureano López Rodó, Alberto Ullastres, and Mariano Navarro Rubio spearheaded significant transformations in the Spanish economy. While the Falangists retained four portfolios (Labor, Housing, Education, and General Secretary of the Movement), their influence diminished, and the military remained the regime’s foundation.
Government Objectives (1957)
The government aimed to control union negotiations while allowing limited administrative and public policy input. Over-bureaucratization and coercion within the trade unions hindered negotiations with workers. Laws like the State Administration Legal System Act, the Administrative Procedure Act, and the Collective Agreements Act transformed state administration through technical training. The Public Order Law and the Anti-Banditry and Terrorism Law established special courts for extremist activities.
Press Law of 1966
The 1966 Press Law abolished censorship but implemented fines and suspensions for publications exceeding permissible limits. This represented a shift, allowing more information and discussion of previously prohibited topics. This was proposed by Manuel Fraga Iribarne.
Organic Law of the State
This law aimed to finalize industrialization and establish a limited organic democracy. It defined Spain as a kingdom, upholding the principles of the National Movement. The law outlined the role of the King, subject to a Council of the Kingdom, aiming to replace one-man dictatorship or oligarchy.
Franco’s Successor (1969)
On July 22, 1969, Franco appointed Prince Juan Carlos as his successor, with the title of King.
Spain’s Relations in the 1960s
Europe
Spain moved closer to Europe despite the regime’s unacceptability to Western democracies. Ullastres became the Spanish ambassador in 1965, but Common Market negotiations began only in 1967. The U.S. reduced military aid as Spain’s importance declined. Relations with the USSR were strained.
North Africa
Relations with Morocco were challenging, marked by abductions of Spanish technicians, territorial water disputes, and the cession of Sidi Ifni. Special relations with Latin American countries were maintained, and Spain’s isolation eased from 1967.
Economic Stabilization Plan (1959)
Objectives
Decreed on July 22, 1959, the plan aimed to encourage saving, deflation, and international economic openness.
Measures
- Limited public and private spending to stabilize prices.
- Introduced a public spending ceiling of 80 billion pesetas.
- Raised prices of some services.
- Established a ceiling on bank credit to the private sector and increased interest rates.
- Liberalized imports of raw materials, machinery, and foodstuffs.
- Reduced state trade volume.
- Set a single exchange rate for the peseta.
- Opened up to foreign investment (excluding national defense, information, and public services).
Other Economic Reforms (1959)
- Reduced tariff protection levels.
- Nationalized the Bank of Spain.
- Implemented antitrust regulations to promote free competition.
First Development Plan (1964)
This plan focused on metallurgy, machinery, shipbuilding, road construction, the chemical industry, agricultural mechanization, and fishing development.
Stabilization Plan Results
Foreign investment and exports increased significantly. Tourism became a highly efficient industry, generating substantial revenue. Export growth was less successful, and the trade deficit, due to increased food and capital goods imports, was offset by tourism income.
Development Limitations
- Dependence on foreign capital and Europe’s economic expansion.
- Influence of large banks.
- Regional imbalances.
Economic Policy Failures
- Incomplete open market economy with price controls and industrial regulation.
- Widespread corruption.
- Limited application of advanced technologies.
Demographic Changes (1957-1970)
Spain’s population increased significantly due to reduced mortality rates, with birth rates remaining around 20%. High population mobility led to emigration to Western Europe (primarily France, Germany, and Switzerland) and internal migration to industrial zones.
Social Changes (1957-1970)
Oligarchy
The rise of urban society, decline of the collective laborer, and expansion of a market-oriented farming class led to the dissolution of the power bloc formed by agricultural and financial interests and the bureaucratic oligarchy.
Middle Classes
The new middle class (senior executives, sales) grew while the old petite bourgeoisie declined. This dynamic class embraced competition and market capitalism.
Working Class and Peasants
A decline in the laborer population, improved wages, and promotion of lessee ownership characterized rural social change. In urban areas, industrial and service sector workers increased. The dictatorship transitioned to worker organizations based around commissions. Social housing and social security improved social welfare.
Fourth Congress of the European Movement (1962)
From May 5th to 8th, 1962, 118 Spanish opposition members, both in exile and within Spain, met in Munich. They outlined conditions for joining the Common Market: representative democratic institutions, guaranteed human rights, recognition of regions, and full trade union and political party freedoms.
Terrorist Groups
- ETA (Euskadi Ta Askatasuna – Basque Homeland and Freedom): Socialist ideology mixed with radical Basque nationalism.
- FRAP (Frente Revolucionario Antifascista y Patriota – Antifascist and Patriotic Revolutionary Front): Aligned with the Communist Party of Spain, advocating armed struggle against Franco’s dictatorship.
- GRAPO (Grupos de Resistencia Antifascista Primero de Octubre – First of October Antifascist Resistance Groups): Marxist-Leninist extreme left with Maoist influences.
Labor and Student Movements (1960s)
The 1962 strikes marked a turning point in organization, confrontation with authority, and self-awareness. Strikes and demonstrations by workers and students escalated in 1966 and 1967. Cultural and social changes, along with secularization, led to a new materialist, neo-Marxist ideology among student and intellectual elites.
The Church and the Franco Regime (Post-Vatican II)
The Second Vatican Council fostered a critical stance against social and political injustice and the dictatorship, leading to a distancing from the hierarchy and radicalization of Basic Christian Communities.
Matesa Case
The Matesa financial scandal, involving a textile machinery manufacturer with subsidiaries in Latin America, was used by movement leaders to discredit Opus Dei economic ministers. Fraga, Solís, Catilla, Antunes, and officials from the Ministries of Finance and Trade were implicated.
Carrero Blanco Government (1969)
This government, characterized by loyalty to the regime, some expertise, and support for limited openness, was perceived as stagnant. Carrero Blanco’s assassination by ETA shattered expectations of continuity.
Arias Navarro Government
This government saw significant staff turnover, with only a third of ministers retaining their portfolios. Opus Dei ministers and the military were removed. Arias Navarro also sidelined the Prince of Spain.
Opposition Groups (Late Francoism)
Organizations like the Assembly of Catalonia, the PCE-initiated Democratic Junta of Spain, and the PSOE promoted the Democratic Convergence Platform.
Democratic Junta of Spain
This organization comprised worker commissions, leftist parties, and democratic right figures. Its program advocated for a provisional government, a democratic regime, amnesty, political and trade union freedoms, and the legalization of all political parties.
Sahara Conflict
in recent months of the Franco regime. The international tribunal of Justice ruling in favor of the independence of the Spanish Sahara while Hassan II threatened to march from Morocco to occupy the territory. October 17 Franco presides over the council of ministers connected to a monitor. The evacuation of civilians from the Sahara began October 29th and 30th Madrid Algeria warned that it would take delivery of the Sahara to Morocco as an act of war