Spain’s Economic Transformation and Social Unrest Under Franco
Economic and Social Changes
Technocrats prevailed, and members of Opus Dei secured important positions in Franco’s 1957 cabinet. While Opus Dei did not support political liberalization, it advocated for economic integration with Europe, which exposed Spain to democratic influences. The technocrats’ proposed measures were established in the Stabilization Plan (1959). This plan aimed to curb inflation, reduce government economic controls, and adapt Spanish economic policies and procedures to European standards. This marked the beginning of the transformation of the Spanish economy in the 1960s, during which industrial production and living standards increased significantly.
Foreign investment surged due to low production costs and the lack of trade union freedom. Spain embarked on a process of industrialization that impacted Catalonia, the Basque Country, and even Madrid and Valladolid. Tourism also grew rapidly. The measures of 1959 and the freedom to travel abroad led workers to seek job opportunities elsewhere, resulting in the emigration of 250,000 Spaniards and a rural exodus from regions like Galicia and Andalusia.
Commercial opening, coupled with the low competitiveness of the Spanish economy, led Spain to import more than it exported, creating a chronic deficit in the balance of trade. This was financed by capital from the tourism boom, remittances from Spanish workers abroad, and foreign investment, transforming Spain into a rapidly industrializing country.
Economic expansion fostered a better-educated middle class and a new urban working class. Foreign cultural influence significantly impacted Spanish society. These factors contributed to growing dissatisfaction with the restrictions imposed by Franco.
Opposition to the Regime
The Anti-Franco Dictatorship Forces
Economic prosperity did not eliminate hostility towards Francoism; however, the oppressive regime fueled growing domestic opposition in the 1960s.
As industrial labor expanded, workers clandestinely organized commissions (CC.OO.), which led regional violent protests in Catalonia and the Basque Country. This caused agitation among university students and opposition from some groups within Francoism, particularly younger, liberal priests. Concurrently, the Vatican II Concilium spurred renovating movements within the Church, creating a crisis in national-Catholicism.
Despite this opposition, Spain’s stability was not significantly affected. Franco, during a period of economic growth and prosperity, solidified his regime by approving the Organic Law of the State by referendum in 1966, the Law on Religious Freedom (1967), and the Press Law (1966). He also named Prince Juan Carlos de Borbón as his successor in 1969.
Late Francoism Crisis
Nationalists in the Basque Country also acted in opposition, notably with the formation of ETA in 1959, followed by FRAP and GRAPO. When 10 ETA members were sentenced to death at the Burgos trial in 1970, widespread protests erupted.
The regime’s response was consistently repression, employing courts-martial, states of exception, and executions. Notable examples include the execution of communist Julián Grimau in 1963 and the 1001 trials against CC.OO. members in 1973.
The final years of Franco’s rule were marked by violence and unrest, with conflicts between reform advocates and the resistant “bunker” faction. This led to an economic recession in the late 1960s, characterized by labor agitation, strikes, and university rebellions. These events prompted the declaration of a state of exception (January-March 1969), reviving dictatorial policies.
The international context also played a significant role. Neighboring dictatorships in Portugal and Greece fell. Furthermore, Franco’s illness in 1974 and 1975 hampered his ability to govern. National and international protests against the regime continued, especially after ETA and FRAP members were condemned to death. In the Sahara, the Frente Polisario sought independence in 1973. In this context, Franco signed the Madrid Accord with Morocco and Mauritania to cede the colony.
In the remaining years of Franco’s rule, opposition intensified, met with harsh government measures. The most virulent opposition came from the revolutionary Basque nationalist movement, which employed terrorist tactics through ETA. The assassination of Prime Minister Carrero Blanco by this group exacerbated the crisis. Blanco’s successor, Arias Navarro (1974), could not quell the ongoing conflicts.
Opposition to the regime persisted (1974-1975), and the Basque region was placed under martial law in April 1975 due to terrorist activities.
When Franco died on November 20, 1975, Spain entered a chronic state of crisis. The economic and social transformations of the preceding decades were complicated by deep-seated tensions. Change was inevitable, but its form remained uncertain.
Acronyms:
- ETA: Euskadi Ta Askatasuna
- FRAP: Frente Revolucionario Antifascista y Patriota
- GRAPO: Grupos de Resistencia Antifascista Primero de Octubre