The Era of Development and the End of Franco’s Regime in Spain

The Era of Development: New International Relations

The Cold War indirectly helped Spain. Franco’s regime was anti-communist, so the USA and the UK viewed him as a potential ally. As a result, Spain’s international isolation diminished: the French border was reopened and foreign ambassadors returned to Spain.

A series of agreements reinforced Spain’s position and strengthened the Franco regime:

  • A concordat with the Holy See was signed (1953).
  • Spain and the USA signed the Pact of Madrid (1953). This allowed the USA to build military bases in Spain in return for economic assistance.
  • Spain was admitted into various international organisations, such as the Food and Agriculture Organization.

The 1950s: Political and Economic Changes

The new international situation forced Franco to make changes in the government.

  • The Falange lost influence and was renamed the National Movement.
  • Leading government positions were often given to Catholics and monarchists.
  • The regime was labeled an “organic democracy” in order to appear to be a true European democracy.

Despite the changes, discontent grew. In the 1950s, there were strikes, and in 1956, there were student protests.

From the late 1950s, members of the Catholic Opus Dei group took up government positions. They developed a new economic policy.

  • The Stabilization Plan (1959) put an end to autarky and brought the Spanish economy closer to the capitalist system.
  • Tax reductions for public companies were eliminated.
  • Public spending was reduced.
  • The currency was devalued to stimulate foreign investment and trade.

Economic Development

There was considerable economic growth between 1960 and 1973, which was helped by a combination of factors:

  • The growth of industry and its technological modernization.
  • The mechanization of agriculture, which increased production and reduced labor costs.
  • Large-scale foreign investment, attracted by low wages and low taxes.
  • Foreign currency sent home by Spanish emigrants and brought in by European tourism.
  • Tourism, attracted by the climate, beaches, and low prices. This boosted the service sector and the development of coastal areas. The arrival of tourists also meant a change in Francoist morality and gender roles.

The 1960s: Social Changes

Economic growth produced inequalities:

  • The changes led to a rural exodus to the most developed areas: the Mediterranean coast, Madrid, and País Vasco. However, there were not enough jobs for everyone. Consequently, around two million people emigrated to countries such as Switzerland, Germany, and France.
  • The rural exodus caused growing demand for housing in the cities, and property speculation grew. Commuter towns were established outside many big cities, and shanty towns multiplied.

Economic transformations facilitated major social changes: the growth of the middle class, women joining the workforce in greater numbers, and increased demand for consumer goods. The improved economic conditions and health care caused the birth rate and life expectancy to increase.

In the field of politics, signs of increased openness included the Press and Printing Law.

In 1969, Franco appointed Juan Carlos de Borbón his successor as king.

The End of the Dictatorship: The Reorganization of the Opposition

Different social sectors united to make work-related, social, and political demands:

  • The Communist Party worked hard to unite all the parties that opposed the dictatorship. These parties participated in the Fourth Congress of the European Movement, held in Munich in 1962, where they produced a document condemning the Franco regime.
  • In 1974, the PSOE began its internal reorganization at the Congress of Suresnes and elected Felipe González as its leader.
  • Other associations were created to organize opposition to the regime: the Junta Democrática de España in 1974 and the Plataforma de Convergencia Democrática in 1975.

In addition, there were other forms of opposition:

  • Neighborhood movements, which called for improvements in local services.
  • The student movement, which turned universities into a permanent source of opposition to the regime.
  • Artists and intellectuals also publicly expressed their rejection of Francoism.
  • The trade union movement, led by the newly created Comisiones Obreras. Despite being illegal, strikes increased, mainly in construction, mining, and the chemical, textile, and metallurgical industries.
  • Violent opposition was carried out by ETA, and later by the groups GRAPO and FRAP. ETA committed its first deadly attack in 1968.

The Crisis of the Regime Through a Deep Crisis:

  • Franco was in very poor health. Because of this, the dictator appointed Admiral Luis Carrero Blanco as head of government in 1973. He wanted to ensure that the regime would continue after his death. However, Carrero Blanco was assassinated by ETA later that year. This led to a serious political crisis.
  • The oil crisis, which broke out in 1973, affected Spain greatly. The rise in oil prices caused inflation, businesses closed, and there was increased unemployment.
  • The global crisis reduced foreign tourism, and less money was sent home by Spanish emigrants. Many emigrants lost their jobs abroad and returned to Spain, further increasing unemployment.
  • The economic crisis led to social unrest. Clandestine trade unions organized strikes, and the opposition became more active.
  • The regime itself was experiencing a political crisis: the inmovilistas, who wanted to keep the regime intact, came into conflict with the conservatives, who accepted some reforms without changing the fundamental principles.

The End of Francoism

The government responded to the complaints with renewed repression:

  • It declared states of exception to silence the protests.
  • Arrests increased, and there were death sentences for members of ETA and FRAP.

Morocco took advantage of the regime’s weakness and annexed Spanish Sahara in the so-called Green March.

Franco died on 20th November 1975.