Spain’s Democratic Transition: Politics, Economy, and Autonomy

Conclusion: Challenges of Democratic Transition

Among the features of the transition period, the following should be highlighted:

  • It was a transaction from a reforming authoritarian state to the setup of a country based on democracy, but it did not produce a clear break between the two systems.
  • It considers an example in the maturity changes of Spanish society in the seventies, since the outcome was relatively peaceful and did not lead to radical reforms.
  • It was the result of an agreement between some of the former state leaders under Franco and the opposition, which facilitated integration into the system.
  • It was not just the result of the ability of a major political personality or a result of pressure from the masses on the leadership, but maintained a balance between them.

A) Domestic Politics

In its first victory, the PP (People’s Party) had to compromise with nationalists, although their relations were strained. However, in the inauguration speech, Aznar was Europeanist and advocated dialogue with all political and social forces. Shortly after, the Agreement on the Consolidation and Rationalization of the Social Security System was signed with the CCOO and UGT unions, which guaranteed pensions. In 1997, labor reform was agreed upon that reduced unemployment from 22% to 15% between 1996-99. In 1998, Spain joined the euro, which came into circulation on January 1, 2002. The economic policy of the previous PP government continued in the fight against inflation, public expenditure control, and reduction of unemployment, which favored economic growth. The Minister of Economy of the Popular Party, Rodrigo Rato, privatized state enterprises to liberalize the economy, and state revenues were extraordinary. One of the most remarkable initiatives of the PP government was the abolition of compulsory military service in 2002. The absolute majority won in 2000 changed the PP strategy, alienating nationalists and increasing regional autonomy issues. Aznar got police in other EU countries to collaborate against terrorism. The collaboration of France was especially successful. In 1997, ETA’s terrorist escalation included the abduction of prison officer Ortega Lara and the murder of PP councilor Miguel Ángel Blanco. ETA declared a truce in September 1998, which was broken fourteen months later. However, security forces made the group feel harassed and weakened. The end of the second term was marked by the most serious terrorist act in the history of Spain, the March 11 bombings in Madrid, featuring Islamic terrorism.

B) Economic Policy

The government took several measures to address the problems of the Spanish economy (the devaluation of the peseta, the control of wages, lower inflation, and increased productivity). One of the most controversial topics was the Rumasa case: the government found irregularities in its holding company, and in 1983, the first Minister of Economy expropriated and later re-privatized all group companies. Another problem was industrial restructuring: they had to reorganize and rearrange the sectors in crisis (textiles, shipbuilding, mining, steel, or consumer goods), which led to downsizing and rising unemployment. The government implemented a tax reform that affected both the work of individuals and assets, and the state had more money to improve and increase unemployment benefits, health, and education. In 1986, VAT came into force. From 1985 to 1992, Spain experienced remarkable economic growth. However, the regulation of pensions led the UGT and CCOO unions to convene a general strike on December 14, 1988. Its success was a blow to the government.

B) Recognition of Autonomy

In many places in Spain, anti-centralist sentiment was expressed with such intensity that it forced the government to establish the administrative and territorial reform of the country as an urgent task. Thus, Suarez had to deal rapidly with autonomy claims. Shortly after the 1977 elections, Sullivan made contact with Josep Tarradellas, a Republican exile since 1954 who held the title of President of the Generalitat and had refused to return to his homeland. This led to a coup de main in Barcelona to put him at the head of a Generalitat. Normality had been achieved in the Basque Country, and a draft of provisional rules of autonomy was finally drawn up by deputies and senators, which the government then used to create the Basque General Council. During the months prior to the adoption of the Constitution, the State of Autonomous Communities began to take shape.

Conclusion: Challenges of Democratic Transition

Among the features of the transition period, the following should be highlighted:

  • It was a transaction from a reforming authoritarian state towards shaping a country based on democracy, but it did not produce a clear break between the two systems.
  • It considers an example in the maturity changes of Spanish society in the seventies, since the outcome was relatively peaceful and did not lead to radical reforms.
  • It was the result of an agreement between some of the former state leaders under Franco and the opposition, which facilitated integration into the system.
  • It was only the result of the ability of a major political personality or a result of mass pressure on the leaders, but maintained a balance between them.

4) The 1978 Constitution

Dogmatic Part

  • The state is defined as social and democratic, with a parliamentary monarchy as a form of government. There is space for self-government in the regions, and two paths to autonomy are established. One quickly led to Catalonia, the Basque Country, and Galicia, and another slower one applied to other regions.
  • The importance of the Catholic Church is expressed; however, the State is declared secular.
  • Freedom of expression, assembly, the right to privacy, divorce, and the abolition of the death penalty are recognized.

Organic Part

  • Limitation of the powers of the Crown (the King took command of the armed forces and serves as representation).
  • The Courts are organized into two chambers: the Senate and the Chamber of Deputies.
  • Division of powers: legislative (Cortes), executive (government), and judicial (courts of justice).