Why did Francisco Franco never reestablish the Spanish monarchy?
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The fact of the matter was that Franco did reestablish the monarchy, but only toward the end of his life.
In 1947, Franco declared Spain a monarchy. At the time, his preferred Spanish heir to the throne, Juan Carlos de Borbon was a child of nine, so that it made sense for Franco to conduct a regency. (Franco disliked the other leading royal candidate to the throne, and he also rejected the idea of crowning himself king.)
In 1969, Franco took the first steps for the transition. (Juan Carlos had just turned 30, the minimum age to be king.) Then Franco "split" is own role, designating Juan Carlos as the future king and head of state, and another man, Admiral Luis Carrero Blanco as his successor as head of government. Only Carrero Blanco's death in 1973, eventually led to Juan Carlos' rising to head of government as well. As a practical matter, Franco retained power until his own death in 1975.
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