Spain: Political, Economic, and Social Changes (1996-2008)
Spain Under the PP Government (1996-2004)
During the first term (1996-2000), the government had a centrist orientation to maintain support from national partners. Social policy was initiated to maintain the welfare state and initiated dialogue with unions and employers. The greatest achievement was meeting the conditions imposed by the European Union to adopt the Euro, for which a privatization of public enterprises began to balance the state deficit. One of the problems was addressing the relationship with the PNV and ETA. After a period of understanding, the murder of Miguel Ángel Blanco, a PP councilor, changed the situation. The nationalist parties believed that there was an agenda by the non-nationalist parties, so they changed alliances, which led to the replacement of the Ajuria Enea Pact by the Lizarra Covenant, incorporating left-wing nationalism but excluding non-nationalists. This accentuated the polarization and extreme positions in Basque politics.
The 2000 elections gave the PP an absolute majority, coinciding with a good economic situation. Independent of other parties, a series of laws were passed, such as the Aliens Act, the Organic Law on Universities, the Organic Law on Quality of Teaching, and the Political Parties Law. Compulsory military service was abolished, and a professional army was created.
The government had to deal with the controversy caused by the National Hydrological Plan with water transfers, the ecological disaster of the Prestige, and general strikes. The PP staged a turnaround in its foreign policy to ally with the U.S., and Spain supported the invasion of Iraq despite the opposition of public opinion expressed in demonstrations.
Spain Under the PSOE Government (2004-2011)
In domestic policy, several statutes of autonomy were renewed to increase self-government.
In the 2008 elections, the PSOE won again and continued with a second term marked by a severe economic crisis.
Spain’s Economic Evolution
Integration into the European Union, along with NATO membership under the government of Felipe González, boosted Spain’s economy.
Since joining the EU, Spain has become a reference point for Latin America, leading to the establishment of Ibero-American Summits. Spain also maintains ongoing relationships with neighboring countries in the Mediterranean region.
After the crisis began in 1973, as Western powers started to grow, Spain lagged behind but was later considered the eighth world power. The Spanish economy passed through three stages:
- Reactive phase: Characterized by investment, GDP growth, and decreased unemployment.
- Recession phase: Coincided with the collapse of the USSR, German unification, and the U.S. recession.
- Growth phase: Aligned with a global economic recovery.
Although the economy has grown, structural problems have persisted, such as unemployment, a large external deficit, the technology gap, and excessive reliance on the housing market.
In 2008, a financial crisis began in global stock markets caused by subprime mortgages. This resulted in a halt in construction, followed by an industrial and economic crisis. Measures included granting state aid.
Transformations in Spanish Society
Spanish society has changed from a country of emigrants to a recipient country of immigration, largely due to the attractiveness of the Spanish economy. Many immigrants come from Latin America, Morocco, and Eastern Europe, with preferred destinations being Madrid, Barcelona, and the Mediterranean coast.
Economic expansion is partly due to the increase in the employed population, but the majority of workers are on temporary contracts. The primary sector has lost importance in favor of the secondary and tertiary sectors. Female employment has continued to grow.
There have been significant social changes, including shifts in family structure with alternative models and the delayed emancipation of young people.
Women have increasingly entered the labor market and society has faced issues like gender violence.
The education system has undergone changes, affecting its stability and potentially worsening the level of education. However, there has been full enrollment, better access to college, and the disappearance of illiteracy.
The State has become secularized, leading to strained relations with the Church due to issues like non-financing, new laws contrary to its doctrine, and the conversion of many religious acts to civilian ones.