Estado Novo (Portugal)
King Carlos I of Portugal confirmed colonial treaties of the 19th century that stabilized the situation in Portuguese Africa. These agreements were, however, unpopular in Portugal, where they were seen as being to the disadvantage of the country. In addition, Portugal was declared bankrupt twice—first on 14 June 1892 and again on 10 May 1902—causing industrial disturbances, socialist and republican antagonism, and press criticism of the monarchy. Carlos responded by appointing João Franco as Prime Minister and subsequently accepting Parliament's dissolution. In 1908, Carlos I was assassinated in Lisbon. The Portuguese monarchy lasted until 1910 when, through the 5 October revolution, it was overthrown and Portugal was proclaimed a republic. The overthrow of the Portuguese monarchy in 1910 led to a 16-year struggle to sustain parliamentary democracy under republicanism – the Portuguese First Republic (1910–1926).
Portugal–Spain relations
In 1974 the dictatorship of the "Estado Novo" was brought to an end by a military "coup" known as the Carnation Revolution. This left Spain increasingly isolated from the rest of Europe, which lasted until the death of Franco a year later, after which Spain returned to being a constitutional monarchy and embraced parliamentarism. The PREC that had followed the Carnation Revolution in Portugal came to an end in 1976 and Portugal also became a democracy.