Economic and Political History of Spain in the European Union

Abstract

One could sum up in one sentence the economic situation of Spain in the last ten years, since it became a part of the European Community, that is: "Spanish people have been living above our own possibilities." 1986 was a year of great importance for the economy of Spain. From January I st, 1986 Spain became a part of the E. C., nowadays known as the European Union (E.U.), enjoying all the benefits and rights that being a member of the Union implies. The first consequences of the integration in the E. U. were very auspicious for the Spanish Economy. For the rest of the members, Spain was that country rising in the skyline as an unique market full of possibilities for investment and development. The result was an intense foreign investment that made the Spanish Economy grow over the average of the Community. Nevertheless, the reality over the last ten years was a little bit different in that the original dream and all the expectations ended up being just that, expectations ... Life goes on and Spain needs to make some radical changes in its political economy in order to obtain the greatest benefit from being in the E.U., now it is time for a change but, How could it be accomplished? Through this paper, I will try to analyze what has it meant for Spain to be in the E. U. during these particularly past ten years and try to establish some theses about its economic development, why it went the way it did and what could be the forecasts for the Spanish Economy.