section_path: History/Carnation Revolution and return to democracy
section_name: Carnation Revolution and return to democracy
paragraph_text: Carnation Revolution and return to democracy
  
  The government and army resisted the decolonization of its overseas territories until April 1974, when a left-wing military coup in Lisbon, the Carnation Revolution, led the way for the independence of territories, as well as the restoration of democracy after two years of a transitional period known as PREC (Processo Revolucionário Em Curso). This period was characterised by power disputes between left- and right-wing political forces. By the summer of 1975, the tensions were so high, that the country was on the verge of civil war. Forces connected to the extreme left-wing launched another coup on 25 November, but a military faction, the Group of Nine, initiated a counter-coup.
  
  The Group of Nine emerged victorious, preventing the establishment of a communist state and ending political instability. The retreat from the overseas territories prompted a mass exodus of Portuguese citizens from its African territories. Over one million Portuguese refugees fled the former Portuguese provinces, as white settlers were usually not considered part of the former colonies. By 1975, all Portuguese African territories were independent and Portugal held its first democratic elections in 50 years.
  
  Portugal continued to be governed by a National Salvation Junta until the Portuguese legislative election of 1976. It was won by the Portuguese Socialist Party and Mário Soares, its leader, became prime minister. Soares would be prime minister from 1976 to 1978 and 1983 to 1985. Soares tried to resume the economic growth and development record that had been achieved before the Carnation Revolution. He initiated the process of accession to the European Economic Community (EEC).
  
  After the transition to democracy, Portugal flipped between socialism and adherence to the neoliberal model. Land reform and nationalisations were enforced; the Portuguese Constitution was rewritten to accommodate socialist and communist principles. Until the revisions of 1982 and 1989, the constitution had references to socialism, the rights of workers, and the desirability of a socialist economy. Portugal's economic situation after the revolution obliged the government to pursue International Monetary Fund (IMF)-monitored stabilisation programmes in 1977–78 and 1983–85.
  
  In 1986 Portugal alongside Spain, joined the European Economic Community which later became the European Union (EU). Portugal's economy progressed considerably as a result of European Structural and Investment Funds and companies' easier access to foreign markets.
  
  Portugal's last overseas territory, Macau, was peacefully handed over to China in 1999. In 2002, the independence of East Timor (Asia) was formally recognised by Portugal. In 1995, Portugal started to implement Schengen Area rules, eliminating border controls with other Schengen members. Expo '98 took place in Portugal and in 1999 it was one of the founding countries of the euro and eurozone. In 2004 José Manuel Barroso, the then Prime Minister of Portugal, was nominated President of the European Commission. On 1 December 2009 the Treaty of Lisbon entered into force, enhancing the efficiency and democratic legitimacy of the Union. Economic disruption and an unsustainable growth in government debt during the 2008 financial crisis led the country to negotiate in 2011 with the IMF and the European Union, through the European Financial Stability Mechanism and the European Financial Stability Facility, a loan to help the country stabilise its finances.