Spain’s Democracy, Economy, and Society Since 1975

Consolidation of Democracy in Spain

Economic Measures

Economic policies have addressed several key issues:

  1. The 1975 Economic Crisis: Industrial restructuring was initially postponed due to the urgency of political measures after Franco’s death. Felipe González later addressed this by closing obsolete industries and introducing modern technology. This led to increased unemployment but facilitated economic recovery.
  2. Adoption of the Euro: A group of countries launched the euro, which replaced the Spanish peseta in January 2002. José María Aznar implemented neoliberal measures that reduced the public deficit, inflation, and unemployment.
  3. The 2008 Economic Crisis:
    • Rodríguez Zapatero’s Initial Approach: Injected money into the banking system.
    • Result: A rapid increase in the public deficit.
    • Subsequent Action: Attempted to reactivate the economy through increased public works.
    • Result: Europe demanded greater austerity measures.

To reduce the public deficit, the following measures were implemented:

  • Reductions in pensions
  • Reductions in civil servants’ salaries
  • Rise in the retirement age
  • Cuts in public spending (education, healthcare, etc.)
  • Two employment law reforms to reduce unemployment (under Rodríguez Zapatero and Mariano Rajoy)

Social Measures

Laws have contributed to societal change since the dictatorship:

  • Consolidating rights and protecting against inequality and discrimination: Law of Divorce, Law of Gender Equality, Law of Dependency, Law of Homosexual Marriage.
  • Consolidating the welfare state: Education, healthcare, unemployment benefits, and retirement pensions for all.
  • Governments invested in improving services. However, the economic crisis has altered this trend, with cuts adopted to save money.

Measures in Education and Culture

Educational reforms aimed to improve quality by:

  • Lowering the school dropout rate
  • Adapting professional training to labor market needs
  • Adapting the university system to the European Bologna Plan

Significant cultural events have promoted a modern image of Spain:

  • Universal Exhibitions: Expo-Seville and Expo-Zaragoza
  • 1982 World Cup and 1992 Olympic Games

Modernizing Spanish Society

Changes in Population

Population growth was slow from 1975 to 2001, increasing only from 35.4 million to 41.1 million due to a falling birth rate. In 2001, the population increased because of:

  • A high immigration rate
  • A slightly higher birth rate

By 2010, Spain’s population reached 47 million. Foreign immigration became significant in the mid-1990s due to economic prosperity. People from Latin America, Africa, and Eastern Europe came seeking work. The immigration rate has slowed since the 2008 crisis, but there were still 5.7 million immigrants in 2010.

Economic Activity

In recent decades, Spain has become a mid-sized economic power in a post-industrial phase.

  • Agrarian Activity: Fewer people employed due to technological advancements.
  • Industry: Fewer workers due to technological advances, with the car, food, and chemical industries being the most productive.
  • Services Sector: 70% of the population works in tourism, commerce, transport, health, education, and other services.