Spain’s Democratic Transition: From UCD to PP (1981-2004)

Spain’s Democratic Journey (1981-2004)

UCD’s Decline and PSOE’s Rise

The disintegration of the UCD between 1981 and 1982 led to Calvo Sotelo dissolving Parliament. The October 1982 elections resulted in a PSOE victory, with Felipe Gonzalez becoming president until 1996. The People’s Alliance, led by Manuel Fraga, replaced the declining UCD.

Challenges of Terrorism

ETA terrorism remained a significant issue. The government pursued secret negotiations with the group, and from 1984, France collaborated with Spain on this front.

Government Reforms and Modernization

The PSOE government implemented reforms, modernizing the army, state administration, and communications, while also developing social policies.

Economic Crisis and Recovery

The government addressed the economic crisis through peseta devaluation, wage restraint, and increased productivity. The Rumasa case highlighted economic irregularities, leading to the government seizing and re-privatizing the holding’s companies. Minister Carlos Solchaga’s industrial restructuring plan, while necessary, led to downsizing and increased unemployment (reaching 22% in 1985). Following the Moncloa Pacts, tax reform led to better income redistribution and improvements to the welfare state (unemployment benefits, healthcare, and education). The introduction of VAT in 1986 aligned Spain with EEC standards. From 1985 to 1992, Spain experienced significant economic growth, reduced inflation, increased exports, and projected a dynamic image with the Seville Expo and Barcelona Olympics.

Social and Economic Measures

Despite economic progress, strikes occurred due to rising unemployment and lower wages. The 1989 elections marked PSOE’s decline, while the right, under José María Aznar, reorganized the People’s Alliance into the Partido Popular (PP). The government’s credibility was affected by the “Guerra Case” and corruption scandals like Luis Roldan and the GAL issue.

PP’s Governance and New Challenges

The PSOE’s declining support led to early elections in March 1996. The PP won but needed to compromise with nationalist parties. After securing an absolute majority in 2000, the Aznar government implemented labor reforms, adopted the euro, abolished military service, and enacted the Aliens Act. Privatization of public enterprises, while generating revenue, faced criticism for focusing on profitable businesses. Aznar inherited the ETA terrorism problem, which escalated in 1997 with high-impact events like the Ortega Lara kidnapping and Miguel Ángel Blanco’s murder. The Basque nationalists’ Estella Pact with ETA aimed to exchange sovereignty for an end to terrorism, but ETA broke the truce after fourteen months, restarting attacks.

The Rise of Islamist Terrorism

Aznar’s second term concluded with the March 11, 2004, Islamist terrorist attacks, one of the most serious in Spain and the Western world. Criticism of the government’s handling of the attacks led to a PSOE victory in the March 14, 2004 elections, with José Luis Rodríguez Zapatero becoming Prime Minister.

Transformation of Spanish Society

Spanish society transformed significantly during this period. EEC membership enriched the cultural landscape, and economic development created a welfare state, attracting massive immigration. New cultural patterns emerged, with women entering the workforce and changing family dynamics. Consumerism became a defining aspect of this social transformation.

ocial transformation.