Spain’s Economic Crisis and the 1978 Constitution
An unsustainable economic situation arose, characterized by 20% inflation, a 10% annual increase in unemployment, and a growing external deficit. Industrial production declined due to rising manufacturing costs, high oil prices, and an over-reliance on industries with limited technological advancement, such as steel, shipbuilding, and transport.
Attempts to increase production capacity to alleviate the situation only worsened it. The Instituto Nacional de Industria (INI) took over private companies facing bankruptcy or serious financial difficulties. However, this measure led to increased public spending, rising inflation, and further impoverishment of the economy.
The Moncloa Pacts
To overcome this crisis, the government proposed a pact to all political forces and unions. These agreements were known as the Moncloa Pacts. The measures included:
- Devaluing the peseta
- Reducing government spending
- Rationalizing energy consumption
- Implementing tax reform
- Increasing wages in line with inflation expectations
The 1978 Constitution
A Constitution Committee was formed to develop the new constitution, comprising members from various political parties: UCD (Herrero de Miñón, Cisneros, and Pérez Llorca), PSOE (Peces Barba), PCE (Solé Tura), CIU (Roca), and AP (Fraga).
Issues such as education, church-state relations, the death penalty, and regional autonomy proved most problematic. These disagreements led Fraga and his AP group to abstain from approving the constitution. The result was a consensus Constitution, reflecting compromises made for the benefit of the common good.
The Constitution was approved by both houses of parliament and subsequently adopted in a referendum. It includes:
- Dogmatic Part: Reflects basic principles, rights, duties, and freedoms.
- Organic Part: Details the organization and functions of state institutions and the territorial organization of the state.
Key Highlights of the 1978 Constitution
- Spain is established as a social and democratic state.
- National sovereignty resides in the Spanish people.
- The form of government is a parliamentary monarchy, where the king is the head of state, symbolizing the unity of Spain. The monarch’s role is to arbitrate and moderate the functioning of institutions and represent Spain abroad.
- The separation of powers is decreed.
- The Army is subject to civilian control.
- A broad statement of social and economic rights and freedoms is included.
- Universal suffrage is granted to those over 18 years of age.
- The non-denominational status of the church is recognized.
- The Cortes (Parliament) is bicameral: Congress of Deputies and Senate.
- The death penalty is abolished, and the Constitutional Court is created.
Spain modernized its political structures and aligned itself with other Western democracies.
Assessment of the Transition
From the outset, those involved in the transition were aware of its significance. Subsequently, the assessment has been overwhelmingly positive, both in Spain and internationally. The peaceful nature of the regime change and the consensus achieved in difficult and complicated circumstances have been widely appreciated. It has been taken as a model by many countries, particularly in Eastern Europe, transitioning towards democracy and capitalism.
However, some historians also point to negative aspects. They argue that the Spanish transition represented a victory for the moderate sectors of the Franco regime, leaving a secondary and collaborative role for others due to fears of another coup and civil war.