The Socialist Governments and the Consolidation of Democracy in Spain
The Consolidation of Democracy in Spain
The Socialist Governments (1982-1996)
In the elections of October 28, 1982, the PSOE (Spanish Socialist Workers’ Party) won an absolute majority with over 10 million votes and 202 seats in the Congress of Deputies. This party governed Spain for over 13 years (until March 1996) under Prime Minister Felipe González.
The first socialist government began its work in December 1982. Some called it a “roller” due to its decisive actions and total political capacity. From 1986, four electoral consultations took place. The PSOE won the first two with an absolute majority, but the third, in 1993, resulted in a simple majority. This forced the Felipe González governments to form agreements with the Basque and Catalan nationalist parties (PNV and CiU). Corruption episodes during the final term contributed to the opposition party, Partido Popular (PP)’s electoral victory in 1996.
Interior and Social Policy Reforms
Domestic policy measures and legislative reforms were undertaken in all areas of economic and social policy. Highlights include the restructuring of certain industries, such as steel, shipbuilding, and mining. Within months of taking office, in February 1983, the socialist government decided to expropriate Rumasa, led by entrepreneur Ruiz Mateos.
In social policy, laws restricting abortion were enacted, and the Organic Law of the Right to Education (LODE) was approved. In 1990, the LOGSE, regulating the educational system, was passed, preceding the new Quality Act passed in 2002 by the PP.
Transport infrastructure underwent major changes during this period with the construction of a new national network of free motorways and the upgrading of the railway system, culminating in the opening of the Madrid-Seville high-speed line for the 1992 Expo.
The Keys to Economic Policy
The PSOE’s initial economic policy measures focused on wage moderation, peseta devaluation, and promoting exports to reduce the trade deficit. The sectors most affected by these measures were naval, metallurgical, mining, and textile. These measures led to a significant increase in unemployment between 1982 (16%) and 1986 (21%), resulting in numerous social protests.
The introduction of VAT and Spain’s incorporation into the European Community (EC) in 1986 aimed to redistribute income, eliminate various taxes, and expose the underground economy.
In energy policy, the decision was made to halt the construction of nuclear power plants and promote alternative energy sources.
Crisis and Corruption
Economic optimism, fueled by strong stock market growth and foreign investment, facilitated the hosting of the 1992 Olympic Games in Barcelona and the Seville Expo with public investment. However, this ushered in a deep crisis beginning in early 1993, with unemployment exceeding 3 million, forcing the Felipe González government to change its economic policy.
The crisis, lasting from late 1992 until 1997, centered on youth unemployment, a serious problem in Spanish society. Successive labor reforms attempted to alleviate this burden.
Political corruption eroded confidence in the Socialists, leading to their electoral defeat in 1996. Businessmen, bankers, and unions were implicated. Spanish law stipulated that political parties could only be financed by state contributions. Adding to this was the “dirty war” against ETA, involving the use of reserved funds by the Ministry of the Interior to finance anti-terrorist groups (GAL). These scandals discredited the PSOE and contributed to their loss in the 1996 elections.
The First Government of the PP (1996)
Early general elections took place in March 1996 due to the economic crisis, corruption scandals (especially the GAL issue), and pressure from the PP, forcing Felipe González to dissolve parliament. The PP won, but with a smaller margin than expected, requiring negotiations with Catalan and Basque nationalists. José María Aznar led a united party.
The new government’s initial measures aimed to improve the Spanish economy by reducing unemployment and inflation, controlling public spending, and adhering to the Maastricht Treaty (1991).
These measures helped control inflation, reduce unemployment, and lower interest rates between 1996 and 2000.
Fiscal policy introduced a new income redistribution system, guaranteed pensions, and privatized companies like Telefónica.
Foreign policy remained largely unchanged during this initial phase. Spain maintained its NATO commitments and joined its military structure. It played a significant role in relations with Latin American countries, Morocco, the US, and the UK. Pressure and attacks related to the transfer of Basque prisoners to the Basque Country continued. Notable events include the Ortega Lara kidnapping and the murder of Miguel Ángel Blanco in 1997. In September 1998, ETA declared a truce that lasted until 1999.