The Spaniard, in her 50s yet still glamorous, eyed me sentiently after I asked her about General Franco and the effects he had on Spain. "You youngsters think you know it all," she said with a wry smile. "But, in fact, you know nothing about what it was living under him [Franco]. There was no freedom. Nothing."
Yet Spain currently has an unemployment rate of nearly 20%, a rate that is only second to Latvia for the highest rate of unemployment in Europe. Later this month, the Spanish government aim to revive the economy through labour reforms. These reforms include allowing firms to cut costs by shortening workers' hours, without having to make them redundant. The Spanish government has said this will reduce the use of temporary contract workers, promote permanent part-time job contracts and encourage the hiring of unskilled youths.
This new policy is similar to the one implemented by Edward Heath, the Conservative Prime Minister from 1970 to 1974, when he brought about the Three-Day Week to conserve electricity, the production of which was severely limited due to industrial action by coal miners. Heath's term in office was interrupted by the ill-timed 1973 Oil Crisis, which also brought an end to the 'Spanish Miracle', which will now be explained.
The Spanish Miracle was the name given to the economic boom across Spain from 1959 to 1973, ending with the start of the Oil Crisis. When Spain's economy lifted off, it coincided with the end of the 'militaristic dictatorship', as Franco's regime had been described; instead, I feel that the boom came about as a consequence of the end of autarky and towards more liberal policies. It was sparked by political and economic reforms, and was certainly a shift away from the far-right that Spain inhabited before the end of the war, and, although venality was still a problem in Spain, it marked a massive improvement in the improvements for the Spanish economy.
The economic boom, however, was brought to an end with the Oil Crisis of 1973. Nevertheless, Franco's reforms had transformed Spain from an autarkic, economically unstable country into one that embraced capitalism; this led to Spain being lifted from the fascist doldrums that it had previously inhabited. None the less, it is reported that, at Franco's death in 1975, one could not buy a bottle of champagne anywhere in Spain, due to the population celebrating the dictator's death.
To exemplify the Spaniard, who said 'you know nothing about...living under Franco', I really have no understanding of living under a tyranny. What I do know, however, that the recovery of Spain is mandatory for economic stability in Europe, and . Figures show that UK sales to Spain, Britain's seventh-largest trading partner, plunged by 31% to £7.74bn (€8.92bn) in 2009, so the security of Spain, as well as other countries on the verge of accumulating levels of debt similar to Greece, is imperative for brighter, better economic times.
If anyone would like to learn more about the history of Spain's economy, I recommend reading An Economic History of Modern Spain, by Joseph Harrison.
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