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The Portuguese monarchy lasted until 1910 when, through the 5 October revolution, it was overthrown and Portugal was proclaimed a republic. In 1908, Carlos I was assassinated in Lisbon by anti-monarchists. Carlos responded by appointing João Franco as Prime Minister and subsequently accepting Parliament's dissolution. In addition, Portugal was declared bankrupt twice-first on 14 June 1892 and again on -causing industrial disturbances, socialist and republican antagonism, and press criticism of the monarchy. These agreements were, however, unpopular in Portugal, where they were seen as being to the disadvantage of the country.
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King Carlos I of Portugal confirmed colonial treaties of the 19th century that stabilized the situation in Portuguese Africa. On 25 April 1974, the Carnation Revolution in Lisbon, a military coup organized by left-wing Portuguese military officers – the Armed Forces Movement (MFA) – led to the end of the Estado Novo. Despite the remarkable economic growth, and economic convergence, by the fall of the Estado Novo in 1974, Portugal still had the lowest per capita income and the lowest literacy rate in Western Europe (although this also remained true following the fall, and continues to the present day). įrom 1950 until Salazar's death in 1970, Portugal saw its GDP per capita increase at an annual average rate of 5.7 per cent.
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In 1968, Marcelo Caetano was appointed prime minister replacing an aged and debilitated Salazar he continued to pave the way towards economic integration with Europe and an higher level of economic liberalization in the country, achieving the signing of an important free-trade agreement with the European Economic Community (EEC) in 1972. Portugal joined the United Nations (UN) in 1955 and was a founding member of NATO (1949), the OECD (1961), and EFTA (1960).
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Under the Estado Novo, Portugal tried to perpetuate a vast, centuries-old empire with a total area of 2,168,071 square kilometres (837,097 sq mi), while other former colonial powers had, by this time, largely acceded to global calls for self-determination and independence of their overseas colonies. Its policy envisaged the perpetuation of Portugal as a pluricontinental nation under the doctrine of lusotropicalism, with Angola, Mozambique, and other Portuguese territories as extensions of Portugal itself, it being a supposed source of civilization and stability to the overseas societies in the African and Asian possessions. Opposed to communism, socialism, syndicalism, anarchism, liberalism and anti-colonialism, the regime was conservative, corporatist, and nationalist in nature, defending Portugal's traditional Catholicism. The Estado Novo was one of the longest-surviving authoritarian regimes in Europe in the 20th century. The Estado Novo, greatly inspired by conservative and autocratic ideologies, was developed by António de Oliveira Salazar, who was President of the Council of Ministers from 1932 until illness forced him out of office in 1968. Together, the Ditadura Nacional and the Estado Novo are recognised by historians as the Second Portuguese Republic ( Portuguese: Segunda República Portuguesa). It evolved from the Ditadura Nacional ("National Dictatorship") formed after the coup d'état of against the democratic but unstable First Republic. "New State") was the corporatist Portuguese state installed in 1933. The Estado Novo ( Portuguese pronunciation:, lit.