The granting of autonomy to Madeiran islands marked a significant milestone in Portugal's post-revolutionary landscape. Following the Carnation Revolution in 1974, which abolished nearly 50 years of dictatorship, Madeira was one of the regions re-evaluated under the new democratic structure that emphasized decentralization and self-governance. The new Statute of Autonomy for Madeira was enacted, reflecting a broader strategy to solidify democracy throughout the country by providing peripheral regions with increased self-management capabilities.

The new political framework allowed Madeira to establish its regional government, which commenced functioning on July 1, 1976. This included a Legislative Assembly and a President, both elected by the local populace, emphasizing democratic participation and representation in governance. The autonomy granted Madeira meant that local authorities were now responsible for important areas such as education, health care, and economic development. The intention was to empower the region to address its unique challenges while fostering a sense of identity and community.

Overall, the changes laid the groundwork for further economic self-sufficiency and allowed for cultural expressions that highlighted Madeiran traditions. The move was part of Portugal’s broader efforts to democratize after decades of authoritarian rule, making it a vital aspect of the country's transition to democracy in the late 20th century.