All I can really think of is the American South...
edit: The disagreement seems to be over the role the civil war played in saving or destroying Spain. Half the country sees Franco as a fascist dictator who set Spain back fifty years, while the other half view him as an imperfect savior of Spain from the communist menace.
I think you may have opened a can of worms. Nearly every country has some aspect of its past that is disagreed-upon--and countries may have completely opposing views of an event between them. Some that I can think of that I've argued over or described (admittedly playing loose with your 'industrialized democracy' parameters) :
I could go on all day though I'd be happy to expand on any of the above. But what you're describing occurs any time a modern political disagreement can be found to have historic roots, or that a modern figure makes historical references to prove a point.