Francoist Spain: International Relations, Politics, and Economy
International Relations and Evolution of the Franco Regime
The Two World Wars and the Hegemony of National-Catholicism
Franco initially showed his support for the Axis powers. However, Spain was not in a material condition to be involved in a war, so Franco declared Spain’s neutrality. In domestic politics, the Traditionalist Spanish Falange de las JONS had a dominant role in the new National-State. Ramón Serrano Suñer, Franco’s brother-in-law, played a prominent role in this endeavor and in relations with the Axis.
The Non-Belligerence
The German victory over France led to a transition from neutrality to non-belligerence, a situation involving clear support for the Axis powers. Germany and Italy explored the possibilities of Spanish integration into the conflict, and Hitler and Mussolini met with Franco. Franco raised demands for financial compensation and territorial expansion. However, Spain did not officially enter the war, but helped by sending strategic material and providing a volunteer unit (Blue Division) that was sent to the USSR to fight alongside German troops.
The Return to Neutrality
As the war began to turn against the Axis powers, the British and American governments pressured the Franco regime to formally distance itself from the Axis. This led to a return to strict neutrality. The official discourse presented the regime as a Catholic, anti-communist, and conservative entity. This entailed the marginalization of the Falange and the abandonment of fascist nomenclature (e.g., the official Roman salute).
International Boycott (1945-1947)
The end of World War II meant international isolation and condemnation for Spain. This became apparent when the United Nations explicitly condemned the Franco regime. The French government closed the border with Spain, and a United Nations agreement recommended the withdrawal of ambassadors from Madrid. The Franco regime presented this international condemnation as a ploy to discredit Spain and instigate a new civil war. The persistence of the Franco regime had a huge economic and political cost. Spain could not benefit from the U.S. aid program for Europe (Marshall Plan) and was excluded from the North Atlantic Treaty Organization (NATO).
International Recognition and the Prevalence of National-Catholicism (1947-1953)
The configuration of two antagonistic blocs (USSR and USA) and the beginning of the Cold War altered the situation for Spain, giving way to international acceptance of the Franco regime. The U.S. refused to impose new sanctions on Spain, and the UN was pressured not to ratify its condemnation from the previous year. Franco decided to carry out a government reshuffle that would enable him to achieve some successes in foreign policy. The new cabinet opened a stage in the Franco regime characterized by the predominance of National-Catholicism, giving greater weight to Catholics. Carrero Blanco was named Undersecretary of the Presidency. Franco won international recognition for the regime with the signing of agreements with the U.S. and the concordat with the Holy See. The agreements with the U.S. covered defensive and economic aspects. They granted the U.S. the right to establish a series of military installations on Spanish soil. In return, Spain received military equipment and financial and technical assistance.
The First Attempts at Opening (1953-1959)
The economic situation in Spain was very difficult. Production increased slowly, and the standard of living was much lower than in other European countries. American aid was inadequate. There was a wave of worker protests and the first stirrings of dissent in universities. Pressure increased on the regime to defend a change in economic orientation. The need to end autarkic policies and liberalize the economy became apparent. In response, Franco forced another change of government. He carried out a new government reshuffle, pushing Falangists aside and promoting the Catholic sector. Ministers from Opus Dei, the so-called “technocrats,” entered the government. This generation of politicians had not participated in the Civil War and would lead a period of strong economic growth.
The Structure of the New State
Basic Laws
The establishment of political laws to organize the Francoist state began during the Civil War and ended with the Organic Law of the State. The first feature of the new state was the concentration of power. Franco was Head of State and Generalissimo of the Armed Forces. He was also head of government, chaired the National Council, and enjoyed exceptional powers to enact laws. Labor regulations were established outside of parliament, clearly inspired by fascist models. After the defeat of the Axis powers, Franco enacted laws to ingratiate himself with the Allies. He established the Fuero de los Españoles (Spaniards’ Charter), which gave the appearance that people enjoyed political freedoms. The Law of Succession allowed Franco to appoint a successor with the title of King. He also enacted the Principles of the National Movement, which reaffirmed the National Movement as the sole political party.
Organic Democracy
For the construction of the new state, Franco was inspired by the Italian corporatist state, which organized popular participation from three basic units: the family, the municipality, and the syndicate. The system was called “organic democracy.” This name was intended to give the regime some legitimacy. Popular representation in government institutions was regulated by the Constitutive Act of the Cortes Españolas (Spanish Parliament), which defined the Cortes as the supreme organ of participation. All its representatives (procuradores) were composed of ministers, members of the National Movement, and representatives of various organizations. It was a corporate representation divided into thirds: the family, the syndicate, and local administration. Franco’s Cortes were not democratically elected. It was an organ of cooperation with the Head of State, since Franco controlled the legislature and had the right to veto laws. The government’s power was transmitted through the institution of civil governors. In each province, a military governor was also instituted. The military structure of the Captaincy General was restored. Mayors were appointed by the provincial governor. Vertical syndicates depended on a Secretary General with the rank of minister. The Trade Union Unity Act stipulated that employers and employees would be integrated into a single syndicate for each industry. The State would establish working conditions, which were often harsh, with low wages and broad benefits for businesses.
Autarky and Rationing
Autarky and its Effects
The main objective of Franco’s economic policy was to achieve economic self-sufficiency (autarky). It advocated for external insulation and state intervention in the economy. Autarkic policy had three main areas of focus:
- The regulation of internal trade: Imports and exports began to be controlled by the state. The result was higher prices for products that the State had to import (e.g., oil) and a shortage of consumer goods. The shortage also affected raw materials and energy, causing a decline in industrial production.
- The building industry: To ensure political and military independence, laws were proclaimed to encourage the creation of public companies. The equipment industry was strengthened and received public support. The railroads were nationalized, and the Spanish National Railway Network (RENFE) was created. The telephone company in Spain was also nationalized. The National Institute of Industry (INI) was founded to spearhead the creation of public companies. The State prioritized investment in sectors linked to military defense.
- Agricultural sector: Low official prices resulted in lower production and decreased productivity per hectare.
The result of the autarkic policy was economic stagnation. It constituted an impediment to modernization trends and entailed a widening of the gap in welfare levels between Spain and other Western European countries.