Franco’s Spain (1959-1975): Political & Socio-Economic Transformation

Item 11: The Second Franco (1959-1975)

Political Developments

Stage 1: Late Francoism (1959-1973)

Features: Vestiges of Falangists disappeared, and political dominance shifted to Opus Dei technocrats. The regime modernized to ensure continuity.

Evolution:

  • 1962: Franco reshuffled ministers, favoring technocrats, and appointed Agustín Muñoz Grandes as vice president.
  • 1966-1967: The new Organic Law of the State was approved, separating Head of State and President of the Government, settling the monarchy, and allowing limited popular participation in the courts.
  • Emerging technocrats faced resistance from the hardline “bunker” and the more liberal “aperturistas” led by Fraga and Solís.
  • 1966: Manuel Fraga promoted the Law on Press and Printing, allowing some freedom of expression.
  • 1969: Juan Carlos de Borbón was appointed as Franco’s successor.
  • Political discourse shifted from the “crusade” to welfare, peace, and prosperity.
  • From 1967, Franco’s regime tightened repression.
  • 1969: The Mates scandal revealed political divisions, leading to Fraga’s dismissal and Carrero Blanco‘s appointment as vice president.
  • December 20, 1973: Carrero Blanco was assassinated by ETA.

Foreign Policy:

  • Approach to the European Community: Technocrats sought EEC membership (achieved in 1986).
  • Relations with the U.S.: Bilateral agreements continued.
  • Gibraltar: Diplomatic pressure and isolation failed.

Decolonization:

  • 1967: Spain granted independence to Equatorial Guinea.
  • 1969: Spain ceded Ifni to Morocco.
  • Carrero Blanco initially blocked Western Sahara’s independence but later agreed to its division between Morocco and Mauritania in 1975.

Stage 2: The Agony of the Regime (1973-1975)

Features: Dictator’s physical decline, internal regime tensions, Church alienation, increased opposition pressure, economic crisis, and democratization wave after Portugal’s “Carnation Revolution.”

Evolution:

  • After Carrero Blanco’s death, Franco appointed Carlos Arias Navarro as President of the Government.
  • The new government, with Falangist ministers, failed to reconcile openness with repression, disappointing both conservatives and “aperturistas.”
  • November 1975: Franco died, leaving a collapsed regime sustained only by his persona and a repressive apparatus.

Foreign Policy:

  • The Francoist state became increasingly isolated.
  • 1975: King Hassan II’s “Green March” prompted Spain to cede Spanish Sahara to Morocco and Mauritania in the Madrid Accords.
  • 1979: Mauritania withdrew from Western Sahara, while Morocco faced resistance from the Polisario Front.

Socio-Economic Development

Development and Crisis (1960-1973)

1959: Technocrats implemented the National Economic Stabilization Plan to curb inflation and open the economy. The peseta was devalued, boosting exports.

The 1960s saw phenomenal economic growth, particularly in industry and services, following development plans coordinated by López Rodó. Development poles redistributed industry across Spain.

Economic activity shifted from agriculture to industry and services. Agriculture modernized, increasing production. Industry boomed in consumer goods, chemicals, steel, and food.

Private transport grew, alongside construction and tourism. The construction boom led to rural exodus, real estate speculation, and chaotic urban growth.