Spain’s Journey to the EU: From Crisis to Integration

Spain’s Integration into the European Union

Economic and Social Challenges of the 1990s

The crisis of the 1990s brought about an increased tax burden, pension reductions, and labor market flexibility. These measures disrupted the existing social peace, leading unions to call a strike on December 14, 1988. By 1992, it appeared doubtful that Spain could meet the convergence criteria for joining the Eurozone. However, after the March 1996 elections, the neoliberal policies of Aznar’s People’s Party government yielded positive results, ultimately enabling Spain to adopt the euro.

Development of the Welfare State

The welfare state aims to maintain the economic well-being of the population and guarantee essential services such as healthcare, education, infrastructure, unemployment benefits, and pensions. Spain’s development of a welfare state began relatively late. It gained momentum under Felipe González’s leadership, expanding to match the standards of other European countries. The Aznar administration continued these efforts, supported by the EU, to create a robust public service structure, focusing primarily on social security (healthcare), education (LOGSE), and transportation.

Foreign Policy and Accession to the EEC and NATO

Spain’s foreign policy had three main objectives: normalizing diplomatic relations, applying for EEC membership (now the EU), and joining NATO. The latter objective proved controversial among left-leaning parties and segments of society due to its association with the United States’ Cold War strategy against the Soviet bloc. The Socialist Party adopted a strategically ambiguous stance on NATO membership, leaving their options open. In 1985, under Felipe González’s leadership, Spain signed the treaty of accession to the European Communities and held the promised referendum, fully integrating into the Western bloc. The “common market” was not merely a trade agreement but also entailed political alignment with democratic systems. Previous Spanish governments had only secured preferential agreements due to concerns about political freedoms within the country. The Suárez and Calvo Sotelo administrations had prepared for EEC application, but economic and internal challenges hindered progress. It was the support from Germany and France under González’s government that paved the way for successful negotiations.