Spain’s Socialist Victory & Reforms (1982-1986)
Victory of the Socialist Party in Spain (1982)
In 1982, the Socialist Party’s victory marked the end of a period of political transition in Spain and the beginning of another.
1982 General Election and the First Socialist Government
During the election campaign, the Socialist Party (PSOE) used a slogan promising change and aiming to elevate Spain’s economic and social standing to that of other European countries. They committed to creating jobs, improving public administration and democracy, and implementing progressive social policies.
On October 28, 1982, the PSOE won a majority in the general elections, with the People’s Alliance becoming the main opposition force. The UCD and PCE were the primary losers in this election.
In early December, Felipe González formed the first socialist government, holding an absolute majority in both the Congress and the Senate. Key members of the Cabinet included Alfonso Guerra, Narcís Serra, Javier Solana, and Miguel Boyer.
The socialist government had two main objectives:
- Stabilizing the democratic system.
- Addressing the economic crisis.
The center-left government was committed to implementing its reformist policies.
Economic Adjustment in Spain
The economic ministries, led by Boyer and Solchaga, embarked on a policy of economic adjustment, implementing a series of measures:
- NEP (Agricultural Employment Plan): The government provided subsidies to farmers in Andalusia and Extremadura.
- Privatization of INI companies: State-owned companies, such as SEAT, were privatized.
- Expropriation of the RUMASA holding: Many state enterprises were expropriated.
- Industrial Restructuring: Unprofitable industries underwent restructuring. This involved closing or renovating companies, reducing the workforce, implementing management changes, and seeking new markets. The goal was to make these companies profitable. For example, the Navy was restructured.
- Social Problems: Economic adjustments and industrial restructuring had serious social consequences, including increased unemployment and social unrest, despite efforts to increase employment.
Army Reorganization and Democratization
The Socialist Party reorganized the army to reduce the number of personnel, offering early retirement and reducing staff. Simultaneously, they increased the Ministry of Defence’s officials, reducing the overall military presence.
Foreign Policy
The socialist government signed a cooperation agreement with the United States in April 1983 and strengthened relationships with Latin America and the Arab world. Two major international events were Spain’s integration into NATO and the EEC.
Entry into the EEC
The treaty for joining the EEC was signed in Madrid on June 12, 1985, and came into force on January 1, 1986. Spain’s entry into the EEC solidified the approval of its democratic system internationally. However, it required restructuring various sectors, leading to factory closures and job losses.
Referendum on NATO
Initially, Felipe González opposed Spain’s entry into NATO. However, in a referendum held on March 12, 1986, the socialist leader advocated for remaining in the organization. Despite a large number of abstentions, continued membership was approved.