Political & Administrative Organization of Spain

Posted on Nov 5, 2024 in Geography

1. The Political and Administrative Organization of Spain

Spain is a decentralized state where power is distributed among various constituencies. These territorial divisions include:

  • State Government
  • Provinces
  • Municipalities

1.1. Evolution

The administrative division of Spain has changed over time. Even in ancient times, the Romans divided the Iberian Peninsula into different provinces. Initially, it was divided into two:

  • Nearer Spain (Ebro Valley and Mediterranean Coast)
  • Further Spain (rest)

Later, in the Lower Roman Empire, Hispania was divided into five provinces:

  • Tarraconensis
  • Cartaginensis
  • Baetica
  • Lusitania
  • Gallaecia

The provinces were led by a praetor, while the economic level (the farm) was directed by the quaestor, whose primary job was to conduct a census of taxpayers.

After the Romans, the Visigoths occupied the peninsula and established a different form of territorial organization through duchies, which became the basic territorial unit (they were smaller than the ancient Roman provinces).

From 711, with the Visigothic disappearance, the peninsula was occupied by:

  • Muslims, who organized their territory by Cora (provinces) until they became independent kingdoms (Taifa Kingdoms).
  • Christians, located to the north, who gradually created larger kingdoms divided into provinces. These provinces could be:
    • Merindades: Led by merino. They included the oldest territories.
    • Adelantamientos: Provinces created to recover territory from Islam.

Around the 13th century, five major political and administrative groups formed on the peninsula:

  • Kingdom of Portugal
  • Kingdom of Castilla y León
  • Crown of Aragon
  • Kingdom of Navarre
  • Granada – United Muslim

It was with the Catholic Monarchs that all peninsular territories (except Portugal) were united under one crown, while maintaining their own political, administrative, and tax structures. This endured during the Habsburg reigns until the end of the 17th century.

In the 18th century, the first attempt to centralize the territory occurred with the Nueva Planta decrees, which abolished the organization of the Crown of Aragon and imposed Castile on the entire peninsula (except Portugal).

Only the Basque Country and Navarra retained their privileges.

In the 19th century, Minister Javier de Burgos conducted a new provincial division in 1833, which largely coincides with the current one, dividing the state into 50 provinces and removing many privileges of the Basque Country and Navarra.

With the Restoration, state centralization was encouraged, which led to regionalist movements (political and social doctrines that seek to defend the rights of historical regions) that began to reclaim their region (area with similar physical characteristics or historical background).

These movements later evolved into nationalism (doctrines seeking that the region be legally considered a nation).

With the Second Republic, a process of granting autonomy began for Catalonia, the Basque Country, and Galicia (although the latter was not granted due to the start of the war). This was granted because the 1931 Constitution established that Spain was a state compatible with the autonomy of municipalities and regions.

After the Civil War, Franco introduced a unitary state, abolishing the Basque and Catalan autonomy statutes and acting against nationalism, but he could not eliminate it.

Once democracy was restored, these nationalisms resurfaced, leading to the establishment of a decentralized state.

1.2. The Current Political and Administrative Structure

Spain is characterized as a decentralized state with three territorial divisions possessing self-government capacity:

  • Municipalities: The basic territorial entity whose main function is to provide services to its people. Its government is the council, led by the mayor and council members elected by residents through universal suffrage.
  • Provinces: A local territorial entity formed by a group of municipalities. Its function is to organize and cooperate in municipal services. Its government is the provincial council, composed of a president and deputies elected from among the council members.
  • Autonomous Communities: A territorial entity formed by neighboring provinces or provinces with a shared historical region. They have legislative autonomy in certain matters. They were re-established after Franco’s death.

2. The State of the Autonomies

The Spanish system is decentralized without being federal, and inequalities exist between communities.

  • Historical Nationalities: Communities recognized as having had or being in the process of having a statute before the Civil War (Catalonia, Basque Country, and Galicia).
  • Autonomous Communities: The rest of the autonomous communities.

The path towards the State of Autonomies was preceded by a pre-autonomy stage before the promulgation of the Constitution. It was a provisional period where regions gradually received functions from the State.

Through pre-autonomy, the territory of each autonomy was delimited, and temporary government agencies were established, directed by parliamentarians from the region, who were to receive powers from the central government.

The final autonomies were regulated by Title VIII of the Constitution, which presented various ways for autonomy to be constituted:

  • Following Article 143: Transfer of certain powers immediately, with the rest transferred every five years.
  • Following Article 151: The highest level of autonomy, developed for historical nationalities. This article allowed for the immediate acquisition of most powers and required a referendum on the autonomy agreement reached.

These higher-level autonomies have:

  • Legislative Assembly
  • Regional Government Council
  • Supreme Judicial Tribunal

Among the additions to the Constitution was the return of historical rights to the provincial territories, which affected the Basque Country and Navarra.

The first two autonomies formed were Catalonia and the Basque Country, under Article 151, followed by Galicia.

The rest of the autonomies were managed according to Article 143. Andalusia was a special case, as some Andalusian municipalities proposed to follow the fast track (Article 151), like the historical communities. Thus, the UCD, in 1979, decided to hold a referendum on autonomy, and almost all provinces (except Almería) agreed to the fast track. However, given the high abstention rate, the government initially refused to grant this pathway but eventually did.

The Constitution also recognizes the possibility of establishing uniprovincial communities, according to Article 144, which affected the Balearic Islands, Navarra, Asturias, Murcia, etc.

Navarra’s case involved its inclusion in a Basque community or not, with its historical status playing an important role in its formation as a uniprovincial community.

Madrid’s case was peculiar because its weight made it difficult to integrate into a community without affecting other provinces. Thus, the idea of Madrid as a uniprovincial community gained strength, although its status was not adopted until 1982.

The cases of Ceuta and Melilla ruled out joining Andalusia; therefore, they were granted the possibility of becoming autonomous with independent and unique characteristics.

This regional structure was generally rapid and perhaps precipitous. As the possibility of increasing powers arose, the decentralization of revenue was intended (the Autonomous Communities would collect taxes and then negotiate with the central government on their contributions).

Autonomy is the largest decentralization process in Spanish history and marked a significant adjustment from the previous administration. In fact, by the mid-1980s, so many powers had been transferred to regional governments that they managed 17% of public expenditure, rising to 24% in 1990.

2.1. The Organization of the Autonomous State

The autonomous state organization is characterized by the following features:

  • Each community is organized by its Statute of Autonomy, approved in parliament. This Statute establishes its territorial boundaries, the organization and headquarters of its bodies, its powers, and the basis for the transfer of others.
  • Communities may assume powers or functions in various matters outlined in the Constitution. These powers are transferred by the State and can be exercised in two ways:
    • Exclusively: When the community applies its own laws and regulations.
    • Shared with the State.

However, certain powers are exclusive to the State and non-transferable (e.g., defense, foreign trade, etc.).

The powers that communities can assume are broad:

  • Political (organize their institutions)
  • Economic (agriculture, livestock, fairs, etc.)
  • Infrastructure and Transport (Public Works)
  • Spatial Planning (urbanism, environment)
  • Social and Health (social services, healthcare, etc.)
  • Cultural, Sports, and Leisure

The autonomous community institutions are:

  • Autonomous Parliament: Makes laws in matters of regional competence, approves the budget, and controls the regional executive.
  • Regional Government: Exercises executive power. Led by the President of the Community.
  • High Court: The highest judicial body in an autonomous community. Its judgments can be appealed to the Supreme Court and the Constitutional Court.

Additionally, each autonomous community has a government delegate in charge of coordinating government action within the community.

The financing of the autonomous state follows two models:

  • The Common Regime: Funded with own revenues (their own taxes) and taxes transferred by the State (33% of income tax, 35% of VAT, 40% of excise duties on alcohol, tobacco, etc.). To compensate for the difference between each community’s financing needs and revenue, there is a Sufficiency Fund that provides money to communities with higher needs than revenue and receives it from others.
  • The Foral Regime for the Basque Country and Navarra: Financed by tax revenue collected by their own tax administrations. The Autonomous State agrees with the General State Administration on the amount payable through agreements or conventions.

To prevent territorial imbalances, the Inter-territorial Compensation Fund provides income to the poorest communities.

3. Territorial Imbalances

Despite the State of Autonomies being based on equality and solidarity, socio-economic and demographic imbalances exist between the Autonomous Communities.

Causes include different natural conditions, unequal resource distribution, the location of the most dynamic economic activities, and human activities.

Between the mid-20th century and the 1975 economic crisis, the key factor in regional inequality was the location of modern industry and, to a lesser extent, the development of services.

The most dynamic areas in the economic field concentrated higher GDP growth, while in the population field, they attracted immigrants from the interior regions of the peninsula, increasing population density.

In the social field, they achieved a good standard of living through the provision of transport infrastructure and social services (health, welfare, education, etc.).

Less dynamic areas were the peninsular interior, where the primary sector remained dominant, industries were small, traditional, and low-skilled, and services were limited.

In these areas, economic growth and GDP grew as they started from very low levels, although at a slower pace.

In the population field, they were emigration areas that suffered depopulation and aging, while in the social field, family income increased very slowly, and there was less infrastructure and fewer services.

Currently, the spatial hierarchy consists of three types of areas:

  • Dynamic Areas: Regions most favored by new development factors, such as Madrid, the Basque Country, the Ebro Valley, the Mediterranean coast, the Balearic and Canary Islands. In these areas, GDP growth has slowed on the economic front. They are areas with tech sectors, innovation, and R&D. In the population field, there is a trend of population and economic activity spreading to other areas. Socially, gross disposable household income and services and facilities are above average.
  • Declining Areas: Highly specialized areas in mature or crisis industries. On the economic front, GDP growth is below average. The population is stagnant or declining, and in the social field, the population’s income is very heterogeneous.
  • Less Dynamic Areas: Those with a greater economic weight of the primary sector, poor development of advanced industries, and the predominance of low-skilled services. This group includes the communities of the peninsular interior, Galicia, the interior of Andalusia, and Murcia. On the economic front, some communities like Murcia and Andalusia have increased their GDP above average in recent years, thanks to technological agricultural development and tourism. In the population field, there are major differences between the low population density communities in the interior, due to past emigration, and the high densities of the coastline, which are above average. Socially, in most cases, gross disposable household income does not reach the Spanish average.

4. Regional Policy and Territorial Cohesion

Regional policies address regional imbalances within a state and promote regional development.

In Spain, regional policy began in the 1960s with the Development Plan (1964-1975), promoting industry in some backward areas.

Its poor results led to a new regional policy since 1986, characterized by:

  • The principle of solidarity between territories established by the Constitution.
  • The establishment and development of the autonomous state.
  • Accession to the European Community.

This has conditioned the new Spanish regional policy, which depends on EU regional policy to correct imbalances between regions.

The objectives of European regional policy are:

  • Convergence: Bringing and coordinating regional policies of Member States and correcting imbalances between European regions to support economically disadvantaged areas. It includes two types of regions:
    • Pure Convergence Regions: Those with a GDP per capita below 75% of the EU average. This group includes Andalusia, Castilla-La Mancha, Extremadura, and Galicia.
    • Convergence Regions called Phasing-out Transitional Support: Those that have left the Convergence objective but maintain it temporarily until 2013 (Asturias and Murcia).
  • Regional Competitiveness and Employment: Aims to strengthen the competitiveness of all regions, boosting the knowledge economy, creating more and better jobs, and preventing social exclusion. It differentiates between two types of regions:
    • Pure Competitiveness and Employment Regions: Those with a GDP per capita above 75% of the EU average and selected by each State. In Spain, they include Cantabria, the Basque Country, Navarra, La Rioja, Aragon, Catalonia, Madrid, and the Balearic Islands.
    • Competitiveness and Employment Regions called Phasing-in Transitional Support: Less developed regions that have emerged from this lack of development through their own growth. In Spain, they include Castilla y León, Valencia, and the Canary Islands.
  • European Territorial Cooperation: Either between:
    • European border regions.
    • Regions of different Member States.
    The Spanish regions are involved in cross-border cooperation projects with Portugal and France.

The instruments of European regional policy financed between 2007-2013, to which Spain will contribute more than 35 billion euros, are:

  • ERDF (European Regional Development Fund): Finances investments to reduce regional imbalances. Provides funding to Convergence regions, Competitiveness and Employment regions, and European Territorial Cooperation.
  • ESF (European Social Fund): Finances actions to develop human resources, prevent and combat unemployment, and improve access to employment. Provides funding to Convergence and Competitiveness regions.
  • Cohesion Fund: Finances only public investment in the environment and trans-European transport networks. As it is a national fund, its aid can be applied to the whole country. After EU enlargement in 2004, Spain no longer meets the requirements for Cohesion Fund money, although it is maintained for a transition period.

European regional policy has had various impacts, such as:

  • Some transfer of sovereignty to the EU.
  • It has allowed Spain to receive aid that has encouraged convergence with Europe. Between 1998-2006, Spain was the country that received the most European aid because when it joined the EU, the Spanish regions were at a clear disadvantage compared to the Community. These grants have contributed to GDP growth, employment creation, and falling unemployment.
  • It has reduced inter-territorial imbalances by focusing on the most disadvantaged regions.

5. State Regional Policy

The Spanish Constitution mandates that the State ensure a balance between regions and guarantee the implementation of solidarity among them. It carries out a regional policy within EU guidelines.

Objectives are:

  • Consolidating the growth of the most dynamic areas.
  • Halting the decline of the Cantabrian coast.
  • Promoting the development of Andalusia and Murcia.
  • Supporting other regions.

To achieve these objectives, the State is trying to promote the economies of less-favored areas in economic difficulty by providing incentives or financial support for investment in companies in certain areas. Although European competition rules prohibit this state intervention, it is supported when possible to promote the economic development of regions with very low living standards.

Areas eligible for these incentives are based on GDP and the unemployment rate, with Extremadura and the Canary Islands (the latter due to its outermost region status) being the most prominent.

These incentives or financial assistance come from the State Budget and are distributed by the courts among the autonomous communities.

5.1. Spatial Planning

Regions also implement policies to offset their internal imbalances and promote their economic, social, and environmental development.

Spatial planning involves implementing the economic, social, cultural, and ecological development of society as a whole.

Its objectives are:

  • Balanced socio-economic development of regions through proper distribution and access to equipment, resources, etc.
  • Coordination of sectoral economic policies (agriculture, industry, tourism, etc.).