Spain’s Socialist Era: 1986-1996 – Reforms, Challenges, and Decline
The Second Socialist Government (1986-1989)
In 1986, the PSOE secured another absolute majority, winning again in 1989, albeit with slightly reduced support. While some electoral promises remained unfulfilled, significant social and political reforms were introduced, consolidating Spanish democracy.
The socialist government’s actions during these years were closely linked to strong economic growth, bolstered by international trends. Approximately 1.7 million jobs were created, although unemployment remained high at 22%. Increased tax revenue and the influx of European funds facilitated an unprecedented public investment policy.
However, this period also saw a rise in social inequalities and persistent unemployment. These issues led trade unions to call a general strike on December 14, 1988.
The Third Socialist Term (1989-1993)
The PSOE secured a third consecutive term, winning the election with an absolute majority, although voter turnout decreased. Economic prosperity during this term allowed for the implementation of important socio-economic measures:
- Expansion of pension and unemployment coverage, along with universal health insurance and pharmaceutical benefits.
- Approval of the LOGSE in 1990, which aimed to improve the quality of the public education system.
- Increased tax burden to accommodate rising expenditures.
- Development of a significant public works policy, including an ambitious infrastructure plan focused on constructing highways and high-speed railroads.
Domestic and Foreign Policy Highlights
- Internally: A new financing model for the autonomous communities was agreed upon, and the Ajuria Enea pact was signed to unite Democrats in the fight against ETA terrorism, following the failure of negotiations between the government and ETA in Algiers.
- Internationally: Spain solidified its full membership in the EU, supported international intervention against Iraq in the 1990 Gulf War and in the former Yugoslavia from 1992 to 1993. Madrid hosted an international conference on Middle East peace in 1991.
Challenges and Decline
Despite these achievements, the socialist government’s management faced increasing scrutiny. Major unions, CCOO and UGT, opposed the government’s policies and organized two major general strikes in 1988 and 1992.
While 1992 was a year of celebration for Spain, it also marked the beginning of the PSOE government’s decline due to several factors:
- The onset of an economic crisis.
- The emergence of corruption and influence peddling cases involving public officials linked to the PSOE.
The Fourth Socialist Government (1993-1996): The Decline of Socialism
The 1993 elections signaled the decline of the PSOE. Despite winning, the party had to rely on support from Catalan nationalist CiU and Basque Nationalists PNV to govern, excluding IU. This reliance forced the PSOE to make concessions to nationalist political forces due to the government’s weakened position.
This weakness was exacerbated by:
- A worsening economic crisis.
- Numerous corruption cases involving government-appointed officials and PSOE leaders.
- Accusations that the socialist government organized a “dirty war” against ETA in the 1980s, leading to the imprisonment of former Minister of Interior José Barrionuevo and former Secretary of State for Security José Luis Vera.
In this context, ETA launched a terrorist campaign targeting PP and PSOE public officials. In 1995, they nearly assassinated the then-leader of the opposition and PP, José María Aznar.
Amidst this economic crisis, the CESID eavesdropping scandal emerged in 1995, implicating various figures, including the King. These events, combined with the PP’s overwhelming victory in the 1995 local and regional elections, led CiU to withdraw its support for Felipe Gonzalez’s government, forcing him to dissolve Parliament and call elections for 1996.