The Restoration of the Generalitat and Catalan Autonomy
The Restoration of the Generalitat and the Statute of Sau
In October 1977, President Josep Tarradellas returned from exile and reinstated the Generalitat of Catalonia. Tarradellas formed a unity government comprised of all parties and promoted the drafting of a Statute of Autonomy (Statute of Sau).
The Statute was a concise text that granted the Catalan government powers in areas such as education, health, labor, public planning, language, and culture. It also allowed for the creation of a police force and left the future regulation of many issues in the hands of the Parliament of Catalonia.
In March 1980, the first regional elections were held, resulting in the triumph of CiU (led by Jordi Pujol) and support for ERC. These parties drove the development of regulations with the aim of achieving the maximum possible powers from the Suárez government. However, the adoption of the Organic Law of Harmonization in the Autonomous Process (LOHPA) disrupted this trend and shifted political action towards defending the national character of Catalonia. This led to a consolidated party system that differed from the rest of Spain, as the division between right and left overlapped with the Catalan national issue.
The Constituent Process and the Forging of Catalan Autonomy
The Parliament approved the new Spanish Constitution on December 6, 1978. It defined Spain as a democratic and social state under the rule of law, organized as a parliamentary monarchy where the Crown’s powers were significantly reduced and the military was subject to civilian authority.
The Constitution established a non-confessional state and provided broad recognition of collective rights and individual liberties, abolishing the death penalty and repealing any previous conflicting legislation.
One of the key elements of the Constitution was the new territorial organization of the previously centralized state, which involved planning and defining nationalities and autonomous regions. This paved the way for the formation of autonomous communities.
In Catalonia, the demand for autonomy was driven by massive mobilizations. The provisional restoration of the Generalitat and the return of its president in exile, Josep Tarradellas, were crucial steps in this process. Shortly after, Basque autonomy materialized with the approval of the General Basque Council in March, and the provisional Xunta de Galicia was also constituted.
The Economic Crisis and the Moncloa Pacts
After 1975, a global crisis was initiated by rising oil prices. In Spain, the outdated technology industry, the weight of traditional activities, and the high consumption of oil increased costs and prices, placing the economy in a state of extreme crisis. This led to an increase in public spending and a surge in inflation.
In Catalonia, the effects were particularly severe due to the importance of the secondary sector. Unemployment soared, the migratory flow stopped, and the growth of democracy was significantly reduced.
On October 27, 1977, the Moncloa Pacts were signed by the main political parties, employers, and unions. These pacts outlined steps to tackle the crisis, including reducing inflation and undertaking reforms to distribute the costs of the crisis more equitably.
The peseta was devalued, monetary policy and public expenditure were controlled, and reforms were implemented in the tax system and social security, including the creation of taxes on capital and personal income tax (IRPF).
Moncloa Pact – Fighting Inflation
- Restrictive monetary policy
- Reduced public spending
- Devaluation of the peseta
- Moderate growth in wages
Reform Policy and Budget Control
- Social Security reform
- Tax reform
- Financial system modernization
- New framework of labor relations
The UCD Government: Centrist Democratic Consolidation (1978-1982)
The new government tackled the economic crisis with the continuity of a political consensus that led to the approval of the Workers’ Statute.
The relative failure of the UCD in the 1979 municipal elections allowed for the formation of left-wing councils in major cities. This crisis was soon transferred within the party, where ideological differences between the centrist and right-wing sectors became evident.
Suárez had proven more effective in dismantling the Franco regime than in constructing democracy. The government’s paralysis became apparent after the PSOE submitted a motion of censure, while political violence and terrorism took center stage.
Suárez resigned in January 1981. It was then that an attempted military coup by ultra-right-wing elements, aimed at destroying democracy, took place. Lieutenant Colonel Antonio Tejero of the Civil Guard stormed the Congress while the investiture of the new government led by Leopoldo Calvo-Sotelo was underway.
The uncertainty lasted until dawn, when the King intervened to discredit the rebels.
The Socialist Change
The Socialist Party (PSOE) achieved victory in the October 1982 elections, campaigning under the slogan of change and modernization. The PSOE had abandoned Marxism as its ideological base and positioned the state as the promoter of change, not through nationalization or expropriation, but through pacts with existing powers.
All of this occurred within the context of a deep economic crisis and the rise of a more aggressive liberalism in the international arena.
The primary focus was on the economic crisis. Industrial restructuring and economic liberalization were implemented to boost private initiative. This was accompanied by measures to combat unemployment and labor reform.
However, the deployment of the welfare state with an effective system of social protection did not occur until the late 1980s. This involved the effective functioning of the tax system based on the generalization of direct and progressive taxation to finance public spending.
The education reform aimed to promote public education and provide subsidies for private schools. These subsidies created a mixed system that guaranteed full schooling (new education law). The university was also addressed through the University Reform Law.
Abortion was regulated, and the army was reformed by reducing its troops and incorporating Spain into NATO.
Finally, the Socialists emphasized European integration: on January 1, 1986, Spain joined the EEC, putting an end to its isolation.