Country profilesSpain

Humanitarian profile

Spain has moved from the margins of Europe into its mainstream as a successful democracy since dictator Francisco Franco died in 1975.  Spain’s former empire was vast and has left a legacy of strong ties with Latin America. It is one of 22 richer countries that have pledged to give 0.7 percent of gross national product in international aid, a target it aimed to reach by 2012.  Its economy, the fifth-largest in the European Union, was hit hard by the global financial crisis. Drought and floods are its main climate-related problems.

Country snapshot

In the past four decades, Spain has moved from the margins of Europe into its mainstream. The transition to democracy from the dictatorship of the Franco era has been completely successful. But its economy, the fifth largest in the European Union, was hit hard by the global recession and will be slow to recover. 

Government

Spain is a constitutional monarchy and a parliamentary democracy. After a general election, the leader of the majority party or coalition is appointed prime minister, the head of the government, by the monarch, King Juan Carlos. The appointment is confirmed by the Congress of Deputies, the lower house of the parliament or Cortes Generales. The upper house is the Senate. The government is highly decentralised. Regional governments are responsible for education, health, social services and urban and rural development. Less than one fifth of overall public spending is by the central government.

Economy

Until the global recession began in 2008, Spain's economy was one of the most dynamic in the EU. Spain had one of the highest growth rates in the region and had created by far the largest number of new jobs, with growth mainly provided by the housing and construction sector. The tourism sector is the third largest in the world - there are some 55 million foreign visitors each year, nearly as many as to the U.S.

The global financial crisis and the bursting of the house price bubble hurt Spain more than most EU countries. Unemployment rose sharply.

Spain has a two-tier labour market. About 50 percent of workers are on permanent contracts, meaning they are difficult and costly to dismiss. The rest survive on short-term contracts, the black market and unemployment benefits. Workers on short-term contracts are always the first to lose their jobs in difficult times. The government claims this arrangement makes for a flexible labour market. But it also means inefficient workers on permanent contracts are protected and there is no incentive to train the young and those on temporary contracts. As a result, labour productivity is amongst the lowest in the EU and labour costs are high. This is a disincentive to foreign investment and makes a reduction in the unemployment rate difficult.

History

Once the most powerful country in Europe with vast possessions in central and South America, Spain had lost most of its empire in wars and rebellions by the end of the nineteenth century. The civil war of 1936-39 between General Francisco Franco's right-wing nationalists and the left-wing Republican government caused the deaths of more than 400,000 people and ended in victory for Franco. Spain was diplomatically and politically isolated after World War Two and not admitted to the United Nations until 1955. Juan Carlos became King and head of state after Franco's death in 1975.  Spain joined Nato in 1982 and the European Union in 1986. Three days before the 2004 elections a series of bomb explosions on Madrid commuter trains killed 191 people. The ruling Popular Party insisted, despite contrary evidence, that the Basque separatist group ETA and not militant Islamists were to blame. The question of responsibility became a controversial election issue which damaged the centre-right Popular Party and was a factor in their defeat by the Socialists. Soon afterwards, Spain withdrew its forces from the U.S.-led coalition in Iraq. Talks between the government and ETA began in 2006 after ETA announced a ceasefire but broke down in 2007 after a bomb explosion at Madrid airport. ETA launched at least 20 bomb attacks in 2008 and killed four people. The Socialist party was returned to power in elections in 2008.

Legal snapshot

The judicial system, which is constitutionally independent of the executive and the legislature, is based on a code of civil law, as opposed to a common law system based on precedent and case law.

Corruption is not widespread thanks in part to a free and lively press that actively investigates official wrongdoing. Nearly 1,000 people were arrested for corruption in the five years to 2009, according to the Interior ministry. In recent years there have been a number of investigations into and arrests for the laundering of money, often through the purchase of property in coastal resort areas.  Much of the money originates from Colombian and Russian organised crime gangs. There have been reports of police abuse of prisoners, especially immigrants, according to Freedomhouse. Prison conditions meet international standards. Transparency International ranks Spain at 32nd out of 180 countries in its corruption perceptions index for 2009.