Post-WWI Europe: France and Spain's Economic and Political Journeys

France: Post-War Economic and Political Landscape

After the war, France was the most benefited economically and territorially by the Treaty of Versailles, becoming the greatest European power. The return of the rich mining regions of Alsace and Lorraine soon facilitated economic recovery.

However, early in the 1920s, the franc began to destabilize in French financial markets. Political leaders did not immediately change their economic policy, believing the crisis was temporary and could be solved with war reparations from Germany. In 1923, the French army occupied the Ruhr to force Germany to pay its debt, but this action failed to resolve the economic instability. This period was marked by great political instability, with 21 governments in just 10 years.

With the rise to power of the *National Union*, led by **Raymond Poincaré**, economic activity was consolidated through reduced public spending, stabilization of the franc, and repayment of public and external debt. French products became more competitive in the market, favoring the onset of economic recovery and social stability.

Spain: From Wartime Prosperity to Dictatorship

During the **First World War**, Spain supplied raw materials to belligerent countries, experiencing significant economic growth. However, after the war, the market entered a crisis: demand decreased, unemployment rose, and general social and political instability ensued.

**Primo de Rivera** staged a coup in 1923, establishing a military dictatorship. He abolished democratic freedoms, closed the Congress and Senate, and implemented censorship and political persecution. He suppressed legislative and executive powers, intervened in the judiciary, replaced municipal governing boards, and declared a state of war throughout the country.

Leveraging Europe's economic stability after the **Locarno Conference**, Primo de Rivera pursued a policy of investment in public works, including the construction of over 5,000 km of roads and the creation of large state-sponsored enterprises like *Telefónica* and *Campsa*. The immense cost of this policy led to heavy debt and a worrying deficit, which worsened after the **Crash of the New York Stock Exchange in 1929**. Public discontent and King Alfonso XIII's loss of confidence led to Primo de Rivera's resignation on January 28, 1930. He died two months later in Paris.