A Critical Juncture

Abstract

This chapter zeroes in on a series of events that helped Spain achieve a much higher degree of political stability than in previous decades. Having sided with the Axis, the end of World War II posed great danger to the regime of Spain’s dictator, General Franco. Yet as the Cold War intensified, the geostrategic value of Spain increased, helping shift American foreign policy interests. After the Korean War broke out, the US sought and achieved agreements with Spain to set up a series of military bases in its territory. The agreements helped solidify the Franco regime in power. The chapter shows how the achievement of political stability in Spain was unlikely, fast, and externally facilitated. Crucially, it also led to a significant increase in economic confidence among the business community in the country.