Spain’s Post-Civil War Era: International Relations and Economic Recovery
Spain’s International Relations After the Civil War
Franco previously sympathized with the Axis powers (Germany and Italy) and joined the Anti-Comintern Pact (an agreement between Germany, Italy, and Japan). At the outbreak of World War II, Spain declared neutrality. However, after a change in foreign ministers, Serrano Suñer, a fascist advocate, took over, and Spain’s stance shifted to “non-belligerency.”
Hitler and Franco met in Hendaye, where Franco sought military supplies, food, financial resources, and African territories in exchange for assistance in Operation Felix. Hitler refused, only allowing Franco to refuel. Another meeting was held in Bordighera between Franco and Mussolini, aiming to persuade Hitler. In 1941, when Germany invaded the USSR, Franco sent the Blue Division. However, he faced pressure from the US and Britain to cease providing refueling stops to Germany.
By 1942, with the Allies gaining the upper hand, Franco distanced himself from the Axis, withdrawing the Blue Division and accepting Italian refugee ships after Mussolini’s downfall.
International Isolation and the Cold War
The Potsdam Conference resulted in a veto against Spain’s UN membership, and several countries withdrew their ambassadors. France closed its borders with Spain, leaving only Portugal and Argentina as supporters. This marked the beginning of Spain’s international isolation.
During the Cold War, Spain was excluded from NATO and denied financial aid from the Marshall Plan. Franco staged demonstrations against the UN’s stance, while the Catholic Church gained prominence within the dictatorship, seeking support from the Holy See.
Breaking the Isolation
The end of isolation came with bilateral agreements between the US and Spain. These agreements established US military bases in Spain as a deterrent against potential Soviet attacks, in exchange for war supplies and military aid to Spain. Secretly, the US introduced nuclear weapons into its bases, but it would not be held responsible in case of an attack by another country.
In 1953, the Concordat with the Holy See was signed, establishing state funding, tax exemptions, and educational privileges for the Church. Spain was admitted to the UN in 1955 and later to the International Monetary Fund, but not to NATO or the EEC. Following UN recommendations, Spain granted independence to the protectorate of Morocco in 1956.
Spain’s Post-War Economic Challenges
Post-war Spain was devastated, with numerous civilian casualties, widespread hunger, public debt, destroyed cities, and reduced livestock and agricultural production. The Civil War, World War II, and international isolation further crippled the economy. The regime implemented rationing of essential goods, leading to a thriving black market and widespread corruption.
Autarky and State Intervention
Franco opted for economic autarky and state intervention, believing that political independence required self-sufficiency. This policy involved agricultural price controls, the creation of the National Wheat Service, RENFE (the national railway company), and the National Institute of Industry (responsible for truck factories, aluminum, chemical and pharmaceutical industries, refineries, and public works).
State control over the market and products resulted in food shortages, necessitating ration cards. It also exacerbated social inequalities, poverty, and discontent due to corruption within the public administration.
Economic Struggles and the Stabilization Plan
Production remained low, with high prices on the black market despite low wages. Workers lacked union representation. The 1950s saw some improvement in industry and the economy, thanks to American aid and the policies of pro-aid Falangists and more liberal Catholics.
Autarky and ration cards were eventually abolished, and commodity imports increased. However, the trade balance remained in deficit. The government introduced two laws aimed at land redistribution and agricultural improvement, but these measures failed to resolve the situation, leading to increased discontent and student strikes. The 1959 fiscal reform introduced the Stabilization Plan.