Spain Under Franco: Economic Boom & Basque Resistance
Spain Under Franco (1939-1975)
The Opus Dei and Economic Liberalization (1959-1975)
Over the years, Franco’s Falangist regime prioritized weakening the power of the technocrats, giving preference to Opus Dei. The technocrats created the Stabilization Plan in 1959 to replace the autarkic economy with a more open and private initiative-based system.
Economic Boom (1960-1975)
The 1959 Stabilization Plan was a success. The economy experienced an average annual growth of 7%. Most sectors of the financial industry were opened. While agriculture was mechanized, a massive rural exodus from Andalusia, Aragon, Extremadura, Galicia, and Castile led farmers to seek work in Europe (particularly Germany) and the industrial centers of the Basque Country, Catalonia, Valencia, and Madrid. This led to a construction boom to accommodate the influx of people. School attendance for children aged six to fourteen became universal, university enrollment increased, and income levels rose, narrowing the gap with wealthier European nations.
This rapid development stemmed from three main sources of income:
- Tourism: Spain’s beaches became a fashionable destination for European summer holidays, attracting millions of tourists (especially from Germany).
- Immigrant Labor: Immigrants provided a large, low-wage workforce.
- Foreign Capital Investment: Spain’s low wages and lack of labor restrictions made it a profitable place for international companies to invest.
During the 1960s, the traumatic memory of the Civil War faded for a new generation. University students and professors, factory workers, and even some priests began to demand freedom through strikes and demonstrations. Political parties operated underground, and the illegal Workers’ Commissions trade union emerged. As Franco aged, strikes, demonstrations, distribution of political material, and attacks became more frequent.
Franco’s Impact on the Basque Country
Following the Civil War, the Basque Country faced executions, detentions, and the abolition of the Basque Statute of Autonomy. The Basque Government, parliament, and police force were dissolved, and the standardization of the Basque language, which had begun under the Republic, was halted. Fear of repression silenced the Basque people. Additionally, Franco imposed an economic penalty on Bizkaia and Gipuzkoa (but not Araba) for siding with the Republic during the war.
The post-war years were harsh, marked by hunger, deprivation, and economic crisis. However, the protectionist policies of the autarkic period inadvertently benefited Basque industry. Factories sprang up, including the Mondragon cooperatives, creating numerous jobs and attracting hundreds of thousands of immigrants from Castile, Galicia, and Extremadura. Cities and towns experienced a construction boom. Income levels rose dramatically, reaching the highest in Spain.
The Basque Country became a center of worker resistance, with strikes becoming increasingly frequent (led by the CCOO). In the 1960s, many young Basque priests spoke out against the dictatorship. Basque schools, newspapers, and publishing houses emerged. ETA (Euskadi Ta Askatasuna) was founded in 1959 and gained prominence in 1968. This armed group sought to combine Basque nationalism and socialism. The Burgos Trial (1970) and the assassination of Carrero Blanco (1973) were among ETA’s most well-known actions.