Franco’s Spain: Transition, Politics, and Economic Shift (1951-1957)
The Transition Phase (1951-1957)
At the beginning of this stage, the system was failing. Autarky and the serious economic situation led to social protests. Spain remained isolated and suffered a boycott by European powers. However, the Cold War changed the situation. The U.S. began a gradual approach towards the Franco regime, which saved it. The start of US relations resulted in economic liberalization, improving the economic situation and reducing social protests. This strengthened and consolidated the dictatorship.
Political Evolution
Domestic Policy
Constant clashes occurred between Catholics and Falangist governments. Periods characterized by Catholic ministers saw a timid liberalization: the return of some exiles, criticism of the vertical union, a new press law, and educational reforms. These measures were frowned upon and criticized by Falangists. Tensions caused by worker and student strikes were met harshly by the regime, reversing the process of political liberalization. Carrero Blanco began to establish himself as a political figure.
Foreign Policy
The agreement with the U.S. ended Spain’s isolation. On September 23, 1953, the U.S. signed pacts with Franco, granting him political backing from a leading world power and opening new international expectations. The signing of the agreements was paraded by the regime’s propaganda as a huge diplomatic and political success. However, this hid a different reality: Spain made concessions involving the largest alteration of its sovereignty in contemporary history.
The financial aid granted by the U.S. had little impact on the economic improvement of the civilian population and was directed towards military expenses.
The Agreement with the Vatican
On August 27, 1953, a new agreement was signed with the Vatican. The state made many concessions: the recognition of the Catholic religion as the official religion. Additionally, the state undertook to provide an endowment to the official church, subsidizing worship and the clergy. The church ensured compulsory religious education. This consolidated the regime. A change in the system of appointing bishops occurred, and Franco received privileges and symbolic honors. Culminating the process of integration in different international agencies, Spain joined the UN on December 15, 1955.
Economic Evolution: The Stabilization Plan
Throughout the transition stage, the economic model of autarky remained, but its consequences were very negative:
- Huge difficulties imposed on foreign trade.
- The decline in the standard of living: per capita income only reached pre-war levels in 1952.
- The 1940s saw an almost continuous inflationary process, while wages were very low, hunger and rationing lasted throughout the decade.
- In the mid-1950s, the black market became widespread.
At the end of the 1950s, the economic situation was disastrous due to the stagnation caused by the autarkic system. Spain came to the brink of suspending international payments in 1958. Spain joined the OEEC, the IMF, and the World Bank. Entry into these international organizations demanded a change in economic policy towards progressive liberalization.