Spain's European Integration and Societal Transformation

3 European Integration

The treaty to join the European Community was signed on June 12, 1985. This culminated a process initiated by the UCD, but mainly due to France's reluctance, seeing Spain as a strong competitor for Mediterranean agricultural products. In January 1986, Spain and Portugal joined the European Union, and Spain underwent a period of economic revival. In 1992, the Treaty of Maastricht was signed. At the end of 1992, the initial euphoria gave way to a serious economic crisis fueled by strong investments and a global recession. Increased inflation sank consumer consumption, leading to business failures and rising unemployment. Spain's economy saw a policy of modernizing public expenditure, reducing job-containment salaries, publishing past due taxes, privatizing state enterprises, and reducing the public deficit. Bank interest rates declined as inflation decreased.

Spain joined the European single currency, the euro, from its inception on January 1, 2002, replacing the peseta, which ceased circulating in March. The implications of full integration were significant: trade in goods and services, capital and labor mobility, yet per capita income remained relatively low, and unemployment rates high.

Society of Democratic Spain

The most important change in Spain after the disappearance of the dictatorship was the recovery of freedom of expression, ideas, politics, and religion, guaranteed under the Constitution of 1978. There was also significant improvement in education and healthcare. Substantial investments were made in infrastructure and the modernization of services. The baby boom of the 70s led to an aging population and low birth rates. The arrival of immigrants from Latin America, Eastern Europe, and Africa covered the demand generated by economic growth, but also led to a rise in xenophobic reactions.

Item 8

Charles II and the War of Succession

Charles II, the last king of the Habsburg dynasty, had no offspring and had to choose a successor. The candidates with the most rights were Archduke Charles of Austria (Austrian branch of the Habsburgs) and Philip of Anjou (House of Bourbon). Charles II ultimately appointed Philip of Anjou, grandson of French King Louis XIV. When Philip of Anjou ascended the throne as Philip V, the European powers were alarmed by the possible union of France and Spain, as Louis XIV had also recognized Philip V's inheritance rights to the French throne.

England, the Netherlands, and Portugal supported the Austrian candidate, leading to the Spanish War of Succession. France and Spain faced off against Austria, England, the Netherlands, and Portugal. It was also a Spanish civil war, as Aragon favored the Austrian candidate, while Castile supported the French candidate. The war ended when Archduke Charles of Austria was elected Emperor of Germany after his brother's death, raising the possibility of a powerful Austro-Spanish bloc. England then pressured for peace, which was achieved with the Treaty of Utrecht.

The Treaty of Utrecht was a series of treaties signed by the participants of the War of Succession. England benefited the most, gaining military and commercial advantages, including the asiento (slave trade contract) and the right to send one ship annually to trade in Spanish America. Spain was the hardest hit, losing all its European territories: Savoy and Sicily were awarded to Austria, and the Catholic Netherlands, Milan, Naples, and Sardinia were also ceded. The peace that followed established a balance between three rival powers: France, Austria, and England. Spain became a second-rate power and allied with France.