EU Integration: Impact on Spain and Global Shifts
European Union Major Policy Issues
The UK initially stayed out of the European Economic Community (EEC), prioritizing free trade and maintaining relationships with its own colonies over closer ties with Europe.
EU Pillars
- Community Treaties: Supranational institutions and powers, representing areas where states transferred sovereignty.
- Common Foreign and Security Policy (CFSP): Focused on foreign relations and security.
- Justice and Home Affairs: Included projects like the creation of Europol.
Operation of European Institutions
Institutions were established for state representation, decision-making, and management of agreements.
- European Commission: A politically independent institution representing the EU’s interests.
- Parliament: Ensures the participation of all EU citizens.
- EU Council: Exercises legislative functions and is the main decision-making body.
- Other Institutions: European Court of Auditors, Economic and Social Committee, Committee of the Regions.
Funds for Cohesion Policy
These funds are designed for Member States with a per capita Gross National Income (GNI) less than 90% of the EU average.
Structural Funds
These funds encourage economic and social cohesion within the EU. Examples include:
- European Agricultural Guidance and Guarantee Fund
- European Regional Development Fund
- European Social Fund
- Financial Instrument for Fisheries Guidance
Eurozone Countries
Spain, Portugal, Italy, Belgium, Netherlands, Luxembourg, France, Germany, Austria, Ireland, Finland, Greece, Slovenia, Malta, and Cyprus.
Creation of the Single Currency
The Euro has become the second most important currency globally, increasingly serving as a reserve currency and a means of payment, challenging the US dollar.
Problems with the European Constitution
While Spain and France approved it, the Netherlands did not. Negative votes led the Council to announce a stay of proceedings and a period of reflection.
Challenges for the EU Today
The EU carries out major cooperation and development aid policies in many third-world countries and participates in humanitarian operations and conflict mediation.
Economic Reforms in Spain and EEC Membership
Spain ratified the International Covenants on Human Rights and the United Nations, signed the Convention for the Protection of Human Rights and Fundamental Freedoms, and subscribed to the European Social Charter. The EEC demanded restructuring of Spain’s economy and legislation to align with EU countries. This involved significant industrial reconversion in several sectors, along with changes in agriculture and livestock.
Legislative and Social Reforms
Spain amended numerous laws and regulations to conform to the acquis communautaire. It invested heavily in the public sector, with increased public spending funded through fiscal reforms.
Tax Consequences of the Reforms
Increased public spending was funded through tax reforms, including the generalization of direct taxes on sales and indirect taxes on personal wealth and consumption.
Importance for Spain of EU Integration
Spain’s economy is now significantly stronger. Its public finances are sound, industry and agriculture have been deeply reformed, and it is a major global tourism power.
Economic Developments in Spain after EU Integration
Spain has been the biggest beneficiary of EU funds. However, since 2012, EU funds to Spain have been reduced significantly, potentially shifting Spain from a receiving country to a net contributor.
Repercussions of Integration for Spain
The implementation of the Euro has meant being part of one of the most dynamic economic areas in the world, but it has also led to an increase in prices, reducing the purchasing power of the population.
International Order Since 1990
The international order shifted from having two major players (the US and USSR) to a new era after the fall of the USSR.
Globalization
Globalization is a fundamentally economic process involving the increasing integration of different national economies into a single global market economy.
Areas of Most Relevant Technical and Scientific Advances
- Biology: Linked to medicine.
- Nuclear Physics: Initiated by the discovery of atomic disintegration.
- Electronics: Integrated circuits.
- Informatics: Enabling efficient and rapid completion of tasks.