Spain 2016 Country Review http://www.countrywatch.com Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 4 Spain 5 Europe 6 Chapter 2 8 Political Overview 8 History 9 Political Conditions 12 Political Risk Index 63 Political Stability 77 Freedom Rankings 92 Human Rights 104 Government Functions 107 Government Structure 110 Principal Government Officials 121 Leader Biography 128 Leader Biography 128 Foreign Relations 130 National Security 144 Defense Forces 146 Appendix: The Basques 147 Appendix: Spanish Territories and Jurisdiction 161 Chapter 3 163 Economic Overview 163 Economic Overview 164 Nominal GDP and Components 190 Population and GDP Per Capita 192 Real GDP and Inflation 193 Government Spending and Taxation 194 Money Supply, Interest Rates and Unemployment 195 Foreign Trade and the Exchange Rate 196 Data in US Dollars 197 Energy Consumption and Production Standard Units 198 Energy Consumption and Production QUADS 200 World Energy Price Summary 201 CO2 Emissions 202 Agriculture Consumption and Production 203 World Agriculture Pricing Summary 206 Metals Consumption and Production 207 World Metals Pricing Summary 210 Economic Performance Index 211 Chapter 4 223 Investment Overview 223 Foreign Investment Climate 224 Foreign Investment Index 226 Corruption Perceptions Index 239 Competitiveness Ranking 251 Taxation 259 Stock Market 261 Partner Links 261 Chapter 5 263 Social Overview 263 People 264 Human Development Index 267 Life Satisfaction Index 270 Happy Planet Index 281 Status of Women 291 Global Gender Gap Index 293 Culture and Arts 303 Etiquette 307 Travel Information 309 Diseases/Health Data 318 Chapter 6 324 Environmental Overview 324 Environmental Issues 325 Environmental Policy 325 Greenhouse Gas Ranking 327 Global Environmental Snapshot 338 Global Environmental Concepts 350 International Environmental Agreements and Associations 364 Appendices 388 Bibliography 389 Spain Chapter 1 Country Overview Spain Review 2016 Page 1 of 401 pages Spain Country Overview SPAIN Located in Southwestern Europe, the main body of Spain is a country that stands at the crossroads of the Atlantic Ocean and the Mediterranean Sea, Europe and Africa. Spain 's borders include the Atlantic Ocean and the Mediterranean Sea, as noted above, but also the Bay of Biscay, the Pyrenees Mountains, France, Portugal, and Andorra. Another border includes Gibraltar -- a semi- autonomous overseas British territory, while the Spanish overseas territories of Ceuta and Melilla border Morocco. Through exploration and conquest, Spain became the most powerful nation in Europe in the 16th century, due to the immense wealth derived from its presence in the Americas. Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind England, France, and Germany in economic and political power. 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. As well, a series of long, costly wars and revolts began a steady decline of Spanish power in Europe. The 19th century saw the revolt and independence of most of Spain's colonies in the Western Hemisphere. Spain remained neutral in World Wars I and II but suffered a bitter civil war in 1936-1939. Following the victory of his nationalist forces, General Francisco Franco ruled as dictator of Spain until his death in 1975. After Franco's death, Spain made a peaceful transition to democracy and achieved rapid economic modernization. Spain joined the European Community, now the European Union, in January 1986. Spain's economy is dominated by the services sector, and the tourist industry holds particular importance since Spain is one of the most popular tourist destinations in the world. Today, the government continues to confront the Basque Fatherland and Liberty (ETA) terrorist organization, but its major focus for the immediate future will be on measures to reverse the severe economic recession that started in mid-2008. To date, that economic crisis has seriously challenged the Spanish financial system and the country's overall economic prospects. Spain Review 2016 Page 2 of 401 pages Spain Spain Review 2016 Page 3 of 401 pages Spain Key Data Key Data Region: Europe Population: 48146136 Temperate; clear, hot summers in interior, more moderate and cloudy along Climate: coast; cloudy, cold winters in interior, partly cloudy and cool along coast. Castilian Spanish Catalan Galician Languages: Euskera (Basque) Valencian Majorcan Currency: 1 Euro = 100 cents Holiday: National Day, 12 October Area Total: 504750 Area Land: 499400 Coast Line: 4964 Spain Review 2016 Page 4 of 401 pages Spain Spain Country Map Spain Review 2016 Page 5 of 401 pages Spain Europe Regional Map Spain Review 2016 Page 6 of 401 pages Spain Spain Review 2016 Page 7 of 401 pages Spain Chapter 2 Political Overview Spain Review 2016 Page 8 of 401 pages Spain History Early History The Iberian Peninsula has been occupied for many millennia. Some of Europe's most impressive Paleolithic cultural sites are located there. The famous caves at Altamira contain spectacular paintings that date from about 15,000 to 25,000 years ago. The Basques are the first identifiable people of the peninsula and are the oldest surviving group in Europe. Iberians arrived from North Africa during a more recent period. Beginning in the 9th century B.C.E., Phoenicians, Greeks, Carthaginians and Celts entered the Iberian Peninsula, followed by the Romans, who arrived in the 2nd century B.C.E. Spain's present language, religion and laws stem from the Roman period. Although the Visigoths arrived in the 5th century C.E., the last Roman strongholds along the southern coast did not fall until the 7th century C.E. 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. Efforts to drive out the Moors lasted until 1492. By 1512, the unification of present-day Spain was complete. Spanish Imperialism to The Spanish Civil War During the 16th century, Spain became the most powerful nation in Europe, due to the immense wealth derived from its presence in the Americas. A series of long, costly wars and revolts, however, capped by the English defeat of the "Invincible Armada" in 1588, signaled a steady decline of Spanish power in Europe. Controversy over succession to the throne consumed the country during the 18th century, leading to occupation by France during the Napoleonic era in the early 1800s, and 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 Spain Review 2016 Page 9 of 401 pages Spain dominated by increasing political polarization, culminating in the leftist Popular Front electoral victory in 1936. A republican style coalition government was established. Pressures from all sides, coupled with growing and unchecked violence, as well as uprising within the ranks of the military, ultimately led to the outbreak of the Spanish Civil War in July 1936. The Spanish Civil War lasted from 1936 through 1939. More than 350,000 were killed in the duration of the war. In 1939, Gen. Francisco Franco led the Nationalists into Madrid and on to victory over the Republican forces. Republicans were executed, jailed or exiled following the war. The Aftermath of the Spanish Civil War Following the victory of his nationalist forces in 1939, Gen. Francisco Franco ruled a nation that was both politically and economically exhausted. Spain was officially neutral during World War II but followed a pro-Axis policy. 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, as evidenced by the small ratio of foreign trade to total economic activity. In addition, 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 greater equality of income distribution, and helped develop a large middle class. Social changes brought about by economic prosperity and the influx of new ideas helped set the stage for Spain's transition to democracy during the latter half of the 1970s. Upon the death of Gen. Franco in November 1975, Prince Juan Carlos I de Borbón y Borbón, Franco's personally designated heir, assumed the titles of king and chief of state. Dissatisfied with the slow pace of post-Franco liberalization, in July 1976 the king replaced Franco's last prime minister, Carlos Arias Navarro, with Adolfo Suárez González. Prime Minister Suárez took 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. Elections to the "Cortes Generales" (the General Courts or National Assembly or parliament) were held on June 15, 1977. Prime Minister Suárez's "Unión de Centro Democrático," also known as the Union of the Democratic Center or UCD, a moderate center-right coalition, received 34 percent of the vote and won the largest bloc of seats.