A brief overview of the Country

Beginning in the ninth century BC, Phoenicians, Greeks, Carthaginians, and Celts entered the Iberian Peninsula. The Romans followed in the second century BC and laid the groundwork for Spain's present language, religion, and laws. Although the Visigoths arrived in the fifth century AD, the last Roman strongholds along the southern coast did not fall until the seventh century AD. In 711, North African Moors sailed across the straits, swept into Andalusia, and within a few years, pushed the Visigoths up the peninsula to the Cantabrian Mountains. The Reconquest by the then Spaniards in their efforts to drive out the Moors lasted until 1492. (approximately 800 years of constant war) By 1512, the unification of present-day Spain was complete.

During the 16th century, Spain became the most powerful nation in Europe, due to the immense wealth derived from its presence in the Americas. But a series of long, costly wars and revolts, capped by the defeat by the English of the “Invincible Armada” in 1588, began a steady decline of Spanish power in Europe. Controversy over succession to the throne consumed the country during the 18th century, leading to an occupation by France during the Napoleonic era in the early 1800s, and led to a series of armed conflicts throughout much of the 19th century.

The 19th century saw the revolt and independence of most of Spain's colonies in the Western Hemisphere: three wars over the succession issue; the brief ousting of the monarchy and establishment of the First Republic (1873-74); and, finally, the Spanish-American War (1898), in which Spain lost Cuba, Puerto Rico, and the Philippines to the United States. A period of dictatorial rule (1923-31) ended with the establishment of the Second Republic. It was dominated by increasing political polarization, culminating in the leftist Popular Front electoral victory in 1936. Pressures from all sides, coupled with growing and unchecked violence, led to the outbreak of the Spanish Civil War in July 1936.

Following the victory of his nationalist forces in 1939, General Francisco Franco ruled a nation exhausted politically and economically. Spain was officially neutral during World War II but followed a pro-Axis policy. Therefore, the victorious Allies isolated Spain at the beginning of the postwar period, and the country did not join the United Nations until 1955. In 1959, under an International Monetary Fund stabilization plan, the country began liberalizing trade and capital flows, particularly foreign direct investment.

Despite the success of economic liberalization, Spain remained the most closed economy in Western Europe—judged by the small measure of foreign trade to economic activity—and the pace of reform slackened during the 1960s as the state remained committed to “guiding” the economy. Nevertheless, in the 1960s and 1970s, Spain was transformed into a modern industrial economy with a thriving tourism sector. Its economic expansion led to improved income distribution and helped develop a large middle class. Social changes brought about by economic prosperity and the inflow of new ideas helped set the stage for Spain's transition to democracy during the latter half of the 1970s.

Upon the death of General Franco in November 1975, Franco's personally designated heir Prince Juan Carlos de Borbon y Borbon assumed the titles of king and chief of state. Dissatisfied with the slow pace of post-Franco liberalization, he replaced Franco's last Prime Minister with Adolfo Suarez in July 1976. Suarez entered office promising that elections would be held within one year, and his government moved to enact a series of laws to liberalize the new regime. Spain's first elections since 1936 to the Cortes (Parliament) were held on June 15, 1977. Prime Minister Suarez's Union of the Democratic Center (UCD), a moderate center-right coalition, won 34% of the vote and the largest bloc of seats in the Cortes.

Under Suarez, the new Cortes set about drafting a democratic constitution that was overwhelmingly approved by voters in a national referendum in December 1978.

GOVERNMENT AND POLITICAL CONDITIONS
Parliamentary democracy was restored following the death of General Franco in 1975, who had ruled since the end of the civil war in 1939. The 1978 constitution established Spain as a parliamentary monarchy, with the prime minister responsible to the bicameral Cortes (Congress of Deputies and Senate) elected every 4 years. On February 23, 1981, rebel elements among the security forces seized the Cortes and tried to impose a military-backed government. However, the great majority of the military forces remained loyal to King Juan Carlos, who used his personal authority to put down the bloodless coup attempt.

In October 1982, the Spanish Socialist Workers Party (PSOE), led by Felipe Gonzalez, swept both the Congress of Deputies and Senate, winning an absolute majority. Gonzalez and the PSOE ruled for the next 13 years. During that period, Spain joined the North Atlantic Treaty Organization (NATO) and the European Community.

In March 1996, Jose Maria Aznar's Popular Party (PP) won a plurality of votes. Aznar moved to decentralize powers to the regions and liberalize the economy, with a program of privatization, labor market reform, and measures designed to increase competition in selected markets, principally telecommunications. During Aznar's first term, Spain fully integrated into European institutions, qualifying for the European Monetary Union. During this period, Spain participated, along with the United States and other NATO allies, in military operations in the former Yugoslavia. Spanish planes took part in the air war against Serbia in 1999, and Spanish armed forces and police personnel are included in the international peacekeeping forces in Bosnia and Kosovo. In a landslide victory, President Aznar and the PP won reelection in March 2000, obtaining absolute majorities in both houses of parliament.

Because of its experience with ETA Basque terrorism, the Aznar government had made fighting terrorism a top priority. After the terrorist attacks on the U.S. on September 11, 2001, President Aznar became a key ally in the fight against terrorism. Spain backed the military action against the Taliban in Afghanistan and took a leadership role within the European Union (EU) in pushing for increased international cooperation on terrorism. The Aznar government, with a rotating seat on the UN Security Council, supported the intervention in Iraq.

Spanish parliamentary elections on March 14, 2004 came only three days after a devastating terrorist attack on Madrid commuter rail lines that killed 191 and wounded over 1,400. With large voter turnout, PSOE won the election and its leader, Jose Luis Rodriguez Zapatero, took office on April 17, 2004.

Local Government
The 1978 constitution authorized the creation of regional autonomous governments. By 1985, 17 regions covering all of peninsular Spain, the Canaries, and the Balearic Islands had negotiated autonomy statutes with the central government. In 1979, the first autonomous elections were held in the Basque and Catalan regions, which have the strongest regional traditions by virtue of their history and separate languages. Since then, autonomous governments have been created in the remainder of the 17 regions. The central government continues to devolve powers to the regional governments, which will eventually have full responsibility for health care and education, as well as other social programs.

Terrorism
The Government of Spain is involved in a long-running campaign against Basque Fatherland and Liberty (ETA), a terrorist organization founded in 1959 and dedicated to promoting Basque independence. ETA targets Spanish security forces, military personnel, Spanish Government officials, and politicians of the Popular Party and the Socialist Party (PSOE.) The group has carried out numerous bombings against Spanish Government facilities and economic targets, including a car bomb assassination attempt on then-opposition leader Aznar in 1995, in which his armored car was destroyed but he was unhurt. The Spanish Government attributes over 800 deaths to ETA terrorism since its campaign of violence began. In recent years, the government has had more success in controlling ETA, due in part to increased security cooperation with French authorities.

In November 1999, ETA ended a cease-fire it declared in September 1998. Since that time, ETA has conducted a campaign of violence and has been blamed for the deaths of some 46 Spanish citizens and officials. Each attack has been followed by massive anti-ETA demonstrations around the country, clearly demonstrating that the majority of Spaniards, including the majority of Spain's Basque populace, have no tolerance for continued ETA violence. The government continues to pursue vigorous counterterrorist policy.

Spain also contends with a resistance group, commonly known as GRAPO. GRAPO is an urban terrorist group that seeks to overthrow the Spanish Government and establish a Marxist state. It opposes Spanish participation in NATO and U.S. presence in Spain and has a long history of assassinations, bombings, and kidnappings mostly against Spanish interests during the 1970s and 1980s.

In a June 2000 communiqué following the explosions of two small devices in Barcelona, GRAPO claimed responsibility for several terrorist attacks throughout Spain during the past year. These attacks included two failed armored car robberies, one in which two security officers died, and four bombings of political party offices during the 1999/2000 election campaign. In 2002 and 2003, Spanish and French authorities were successful in hampering the organization’s activities through sweeping arrests, including some of the group’s leadership.

Al Qaeda is known to operate cells in Spain. On March 11, 2004, only three days before national elections, 10 bombs were detonated on crowded commuter trains during rush hour. Three were deactivated by security forces and one was found unexploded. Evidence quickly surfaced that jihadist terrorists with possible ties to the al Qaeda network were responsible for the attack that killed 191 people. Spanish investigative services and the judicial system have aggressively sought to arrest and prosecute suspected al Qaeda members and actively cooperate with foreign governments to diminish the transnational terrorist threat.