Spain’s Economy and Geopolitics: EU and Global Context

Spain’s Economy in the Context of the EU and the World

Spain is among the leading countries of the European Union in terms of economic output, with a tendency to grow above the average. However, the Spanish economy tends to face more significant challenges in some crucial areas. The first is unemployment. Historically, Spain has one of the highest unemployment rates in the EU, which disproportionately affects women and young people under 25. The second economic aspect where Spain often finds itself in a worse situation than the EU average is inflation. One of the most frequent causes of inflation is the increase in oil prices, raw materials, and products such as cement or steel in international markets. This price increase is usually caused by increased demand, leading to rising inflation.

In the global economy, Spain is among the most developed nations, with one of the most open economies in the world. The Spanish State is ranked eleventh in the list of economic powers, according to the volume of GDP by purchasing power parity (PPP).

Geopolitical Space: Delimitation, Demarcation, and Administrative Division of Spain

The surface area of Spain is 505,990 km², including the peninsula, the Balearic Islands, and the North African possessions. It is joined to the rest of Europe by the Pyrenees and is separated from the African continent by only 14 km at the Strait of Gibraltar. Also part of the national territory is the airspace and territorial waters, which is a strip of sea 12 nautical miles wide around the coasts. Spain has a total of 2,032 km of border with five different countries: France, Portugal, Andorra, Morocco, and the United Kingdom. These borders have been the site of political and military conflicts. However, these borders are currently stable.

  • The French Border: The enclave of Llívia, a village that belongs to Spain, is located on the French border. This peculiar situation is internationally accepted and is not subject to any discussion.

  • The United Kingdom Border: The Spanish state borders the United Kingdom at Gibraltar, which is considered an overseas territory of the British Crown. Gibraltar, located at the southern tip of the peninsula near the Bay of Algeciras, was ceded to the British during the War of Spanish Succession.

  • The Portuguese Border: Olivenza is a town in the province of Badajoz with Portuguese culture. In 1801, Olivenza became part of Spain, although this was later repealed with the agreements of the Congress of Vienna in 1815.

  • The Moroccan Border: The border with the Kingdom of Morocco has several points of contact that are subject to political differences. The most well-known places are the cities of Ceuta and Melilla. Other Spanish possessions include the Rock of Vélez de la Gomera, the Rock of Alhucemas, and the Chafarinas Islands.

Spain’s Strategic Position and the EU’s External Border

A consequence of Spain’s strategic position between Europe and Africa is that it has become an external border of the EU. Since the inception of the European Communities, one of its major goals has been the free movement of citizens of Member States. The decrease in the control of internal borders has as its counterpart the increased surveillance at borders with states outside the EU, i.e., at the external borders. To coordinate the actions to control all the external borders, the EU agency Frontex was created. The responsibility to monitor and control the borders and entry into the country, such as at airports, lies with the individual states. However, Frontex coordinates and facilitates the implementation of necessary measures to implement Community policies and ensure the security of external borders.