Portugal After Salazar

In 1968 Salazar became critically ill and his close associate Marcello Caetano replaced him as premier. Under Caetano, government controls were eased slightly and greater internal selfgovernment was authorized for the overseas possessions. However, many repressive practices were maintained. As a result, unrest continued within Portugal while liberation groups intensified the battle for independence in the African possessions. Prolonged warfare in Africa seriously weakened Portugal's economy, contributing to internal discontent.

In 1974 Caetano's government was overthrown by an armed forces coup. A provisional government was formed, and a series of reforms returned many freedoms to Portugal's citizens. A new constitution in 1976 guaranteed civil liberties and established a democratic socialist government.

Meanwhile, the provisional government dismantled Portugal's empire. Portuguese Guinea was granted independence in 1974, followed by Angola, Cape Verde, Mozambique, and Sao Tomé and Príndpe in 1975. Portugal withdrew from Portuguese Timor, now called East Timor, in 1974 but never fully granted it independence. It retained control over Macau, a small territory on the Chinese coast it acquired in 1557.

The government moved increasingly to the left, nationalizing many businesses and collectivizing agriculture. This trend was reversed after the failure of a coup by extreme leftists late in 1975. From 1975 to 1987 no party held a majority of seats in parliament and Portugal had a succession of unstable governments. In 1987 the Social Democratic party won a majority of seats in parliament. Meanwhile, in 1986, Portugal joined the European Community (now the European Union).

The Social Democrats fell from power in 1995 when the Socialists won a majority of seats in parliamentary elections. In 1998, Portugal and Indonesia, after years of acrimonious relations, reached an agreement on an autonomy plan for East Timor, which Indonesia had occupied since 1975. In 1999, Portugal returned Macau to China in accordance with the terms of a 1987 agreement between the two countries.

In elections in 2002, the Social Democrats won the most seats in the Assembly. The Socialist Party regained control of the Assembly in 2005.