Spain's Transition to Democracy: Reforms and Challenges (1977-1985)

Francoist Cortes Dissolution

This law was approved by the Francoist Cortes, although it meant their own dissolution. To convoke elections, it was necessary to put an end to the Francoist Cortes; this law abolished those Cortes.

1977: A Year of Change

In the first six months of 1977, significant changes were made:

• Further amnesty for political prisoners
• Independent trade unions replaced vertical syndicates
• Right to strike was restored
• Legalization of political parties began in February

June 1977 Elections

Elections were convoked in June 1977, after trade unions and the PCE (Communist Party of Spain) were legalized. The UCD (Union of the Democratic Centre) won, and the PSOE (Spanish Socialist Workers' Party) came second. Another feature was the important representation of nationalist parties.

Consensus Politics (1977-1979)

The period 1977-1979 is marked by “consensus politics,” that is, a high degree of cooperation between the government and the opposition to lay the foundations of the new regime. Main tasks were the drafting of a Constitution and taking measures to fight the serious economic crisis. Both tasks were achieved through compromise and negotiation among all forces – the drafting of the Constitution and the Moncloa Pacts.

Key Events and Agreements

• 1979 Constitution
• Statute of Gernika
• The Moncloa Pacts

Economic Crisis of 1977

The 1977 economic situation was about to burst. From 1973, prices rose. The return to democracy coincided with an explosive quadrupling of oil prices, which had an extremely serious effect on the economy because Spain imported 70% of its energy. Spanish exports could not balance the growing cost of imports. Foreign debt had risen to 14,000 million dollars; the inflation rate was 44%; industries were indebted and had big losses; unemployment figures were rising, and there were strikes.

The Moncloa Pacts

It was apparent that austerity would have to be taken, and Suarez knew he needed to gain support for a national economic recovery program. This was achieved in October 1977 in the Moncloa Pacts, named for the prime minister’s official residence where leaders of Spain’s major political parties and the two leading trade unions, CCOO (Confederación Sindical de Comisiones Obreras) and UGT (Unión General de Trabajadores), met and agreed to share the cost of, and the responsibility for, economic reforms. Parties of the left were promised an increase in unemployment benefits and the creation of new jobs. In return, they agreed to further tax increases, credit restrictions, reductions in public expenditures, and a 20% wage increase. The working class would bear the cost of the economic crisis; unions appeared prepared to make sacrifices to consolidate democracy.

1981 Coup Attempt and Aftermath

In 1981, Suarez resigned. While in the Congress of Deputies, the election to name the new Prime Minister, Carlos Otelo, was taking place, Tejero stormed the Congress of Deputies. The military coup did not succeed. In 1981, the PSOE, with Felipe González, won the elections, and in 1985, Spain became a member of the EU.