Recent Historical Political Developments
See also: Spanish transition to democracyThe end of the Spanish Civil War, put at end to the Second Spanish Republic (1931–1939), after which a dictatorial regime was established, headed by general Francisco Franco. In 1947 he decreed, in one of the eight Fundamental Laws of his regime, the Law of Succession of the Head of State, that Spain was a monarchy with a vacant throne, that Franco was the head of State as general and caudillo of Spain, and that he would propose, when he deemed opportune, his successor, who would bear the title of King or Regent of Spain. Even though Juan of Bourbon, the legitimate heir of the monarchy, opposed the law, Franco met him in 1948, when they agreed that his son, Juan Carlos, then 10 years old, would finish his education in Spain — he was then living in Rome — according the "principles" of the Francoist movement. In 1969, Franco finally designated Juan Carlos as his successor, with the title "Prince of Spain", bypassing his father Juan of Bourbon.
Francisco Franco died on 20 November 1975, and Juan Carlos was crowned King of Spain by the Spanish Cortes, the non-elected Assembly that operated during Franco's regime. Even though Juan Carlos I had sworn allegiance to "National Movement", the sole legal party of the regime, he expressed his support for a transformation of the Spanish political system as soon as he took office. Such an endeavor was not meant to be easy or simple, as the opposition to the regime had to ensure that nobody in their ranks would turn into extremism, and the Army had to resist the temptation to intervene to restore the "Movement".
In 1976 he designated Adolfo Suárez as prime minister — "president of the Government" — with the task of convincing the regime to dismantle itself and to call for elections to a Constituent Assembly. He accomplished both tasks, and the first democratically elected Constituent Cortes since the Second Spanish Republic met in 1977. In 1978 a new democratic constitution was promulgated and approved by referendum. The constitution declared Spain a constitutional parliamentary monarchy with H.M. King Juan Carlos I as Head of State. Spain's transformation from an authoritarian regime to a successful modern democracy was a remarkable achievement, even creating a model emulated by other countries undergoing similar transitions.
Adolfo Suárez headed the prime ministership of Spain from 1977 to 1982, as the leader of the Union of the Democratic Center party. He resigned on 29 January 1981, but on 23 February 1981, day when the Congress of Deputies was to designate a new prime minister, rebel elements among the Civil Guard seized the Cortes Generales in an a failed coup that ended the day after. The great majority of the military forces remained loyal to the King, who used his personal and constitutional authority as commander-in-chief of the Spanish Armed forces, to diffuse the uprising and saving the constitution, by addressing the country on television.
In October 1982, the Spanish Socialist Workers' Party, led by Felipe González, swept both the Congress of Deputies and Senate, winning an absolute majority in both chambers of the Cortes Generales. González headed the prime ministership of Spain for the next 13 years, during which period Spain joined the NATO and the European Community.
The government also created new social laws and large scale infrastructural buildings, expanding the educational system and establishing a welfare state. While traditionally affiliated with one of Spain's major trade unions, the General Union of Workers (UGT), in an effort to improve Spain's competitiveness in preparation for admission to the EC as well as for further economic integration with Europe afterwards, the PSOE distanced itself from trade unions. Following a policy of liberalization, González's government closed state corporations under the state holding company, the National Industry Institute (INI), and down-sized the coal, iron and steel industries. The PSOE implemented the single market policies of the Single European Act and the domestic policies consistent with the Maastricth Treaty EMU criteria. The country was massively modernized and economically developed in this period, closing the gap with other European Community members. There was also a significant cultural shift, into a tolerant contemporary open society.
In March 1996, José María Aznar, from the People's Party, obtained a relative majority in Congress. Aznar moved to further liberalize the economy, with a program of complete privatization of state-owned enterprises, labor market reform and other policies designed to increase competition in selected markets. Aznar liberalized the energy sector, national telecommunications and television broadcasting networks. To ensure a successful outcome of such liberalization, the government set up the Competition Defense Court (Spanish: Tribunal de Defensa de la Competencia), an anti-trust regulator body entrusted with restricting monopolistic practices. During Aznar's government Spain qualified for the Economic and Monetary Union of the European Union, and adopted the euro, replacing the peseta, in 2002. Spain participated, along with the United States and other NATO allies, in military operations in the former Yugoslavia. Spanish armed forces and police personnel were included in the international peacekeeping forces in Bosnia and Herzegovina and Kosovo. Having obtained an absolute majority in the 2000 elections, Aznar, headed the prime ministership until 2004. Aznar supported transatlantic relations with the United States, and participated on the War on Terrorism and the invasion of Iraq. In 2004, he decided not to run as a candidate for the Popular Party, and proposed Mariano Rajoy, who had been minister under his government, as his successor as leader of the party.
In the aftermath of the terrorist bomb attacks in Madrid, which occurred just three days before the elections, the Spanish Socialist Workers' Party won a surprising victory. Its leader, José Luis Rodríguez Zapatero, headed the prime ministership from 2004 to 2011, winning a second term in 2008. Under a policy of gender equality, his was the first Spanish Government to have the same number of male and female members in the Council of Ministers. During the first four years of his prime ministership the economy continued to expand rapidly, and the government ran budget surpluses. His government brought social liberal changes to Spain, promoting women's rights, changing the abortion law, and legalizing same-sex marriage, and tried to make the State more secular. The economic crisis of 2008 took a heavy toll on Spain's economy, which had been highly dependent on construction since the boom of the late 1990s and early 2000s. When the international financial crisis hit, the construction industry collapsed, along with property values and several banks and cajas (savings banks) were in need of rescuing or consolidation. Economic growth slowed sharply and unemployment soared to over 20%, levels not seen since the late 1990s. In applying counter-cyclical policies during the beginning of the crisis, and the ensuing drop in State revenues, the government financing fell into deficit. During a 18 month period from 2010 to 2011, the government adopted severe austerity measures, cutting spending and laying off workers.
In March 2011, Rodríguez Zapatero made his decision not to lead the Socialist Party in the coming elections, which he called ahead of schedule for 20 November 2011. The People's Party, which presented Mariano Rajoy for the third time as candidate, won a decisive victory, obtaining an absolute majority in the Congress of Deputies. Alfredo Pérez Rubalcaba, first deputy prime minister during Rodríguez Zapatero's government and candidate for the Socialist Party in 2011, was elected secretary general of his party in 2012, and is now the leader of the opposition in Parliament.
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