Fragmented powers
The 1978 Constitution, established after the end of Franco's regime, structured the Spanish state in a singular way: power is divided between the King, the central government and the autonomous communities. Spain is therefore a constitutional monarchy, and Felipe VI, King of Spain, has reigned since 2014. Head of state, he does not govern; his powers are limited. He is head of the armed forces, ratifies laws, appoints the president of the central government and can dissolve the government.
Thus, the executive is led by the central government. The president of the government, currently the socialist Pedro Sanchez, heads the executive and is appointed for 4 years. He is the leader of the parliamentary majority, the jefe del gobierno. Legislative power lies with Parliament, or Cortes generales. It is made up of the Congreso de los diputados (Congress of Deputies) and the senado (Senate). The central government's most important tasks are the formulation and conduct of domestic and foreign policy, civil and military administration and defense of the State, the exercise of executive power and regulation in accordance with the Constitution and laws, and the preparation of general State budgets.
Opting for an intermediate system between centralism and federalism, the 1978 Constitution instituted regional governments. Catalonia and the Basque Country were the first to join in 1979. Within ten months, all Spaniards were asking for a statute for their region. 17 communities were created, each with its own autonomous status. Aragon, Navarre, Valencia, Castile-León, Castile-La Mancha, Andalusia, Murcia, Extremadura, Galicia and Asturias were granted autonomous status in 1981. Madrid, La Rioja and Cantabria obtained their status in 1983. The Autonomous Community was defined according to historical, cultural and linguistic criteria. Geographical or even demographic criteria were not used as relevant criteria for this community division. As a result, Spain's communities can be very disparate (La Rioja represents 1% of the territory in terms of surface area, compared with 18.5% for Castilla y León).
Basque Country and Navarre, two specific communities
Exceptions among the 17 communities, the two territories have the capacity to regulate taxes and the autonomy to manage them. In return, the Economic Agreement establishes a quota that Navarre and the Basque Country must pay to the Spanish state to cover general expenses that are the exclusive responsibility of the central government, such as international relations, defense and the armed forces. Secondly, they remain "foral communities" to this day. During the Spanish Reconquista, numerous fueros were granted by kings and lords to attract a Catholic population to the reconquered lands. These fors guaranteed certain privileges and freedoms to the people. In Navarre, the first fors were drawn up in 1237, establishing the legal rights of the kingdom's inhabitants. This was followed by the province of Álava in 1483, Guipúzcoa in 1491 and Vizcaya in 1526. These fors are at the origin of the current political, administrative and fiscal autonomy of the Basque Country and Navarre. The Guernica tree in Vizcaya has been the symbol of Basque liberties ever since the kings of Castile swore an oath to respect Basque fors. Even today, the lehendakari (president of the Basque autonomous community, currently Iñigo Urkullu) takes the oath under the tree when he takes office.
In addition to the national parties, the main ones being PSOE (socialists), PP (conservatives), Podemos (radical left), Ciudadanos (center-right), Los Verdes (ecologists) and Izquierda Unida (left-wing alliance), there are a large number of regional parties operating within the Communities. The three main parties in northern Spain are: the Basque Nationalist Party (PNV), a centrist nationalist party with the largest representation in the Basque Parliament (28 seats). Virtually all Basque government presidents since 1980 have come from this party; second political force, with 18 seats, Euskal Herria Bildu, a nationalist and pro-independence political coalition created in 2012 that brings together the "abertzale" left-wing parties of the Basque Country and Navarre; third force with 11 seats, Elkarrekin Podemos, a radical left-wing political coalition.
The ETA issue
In addition to political parties, the Basque Country is characterized by the presence of ETA, or Euskadi Ta Askatasuna (meaning Basque Country and Freedom), a political movement that has taken various forms since its creation in 1959, under the dictatorship of General Franco. In its early days, the group's aim was to defend Basque identity in the face of Franco's oppression. In the 1970s, the movement split into a political branch (which renounced armed struggle in 1982) and a military branch, which became radicalized and evolved into a terrorist organization. Despite the signing of the Basque Statute of Autonomy in 1979, ETA continued to carry out attacks. The 1990s were marked by the scandal of the Anti-Terrorist Liberation Group (GAL), responsible for dozens of murders and acts of torture of ETA members, whose links with the highest echelons of the Spanish government were proven. In the 2000s, ETA was weakened by the outlawing of Batasuna (a left-wing Basque pro-independence party) in 2003, followed by increased police cooperation between France and Spain. After an aborted truce in 2006, the Basque armed organization ETA announced on October 20, 2011 that it was "definitively ceasing its armed activity", after more than 50 years of fighting for the independence of the Basque country, which had claimed more than 800 lives. On April 20, 2018, the organization apologized to some of its victims in a statement published in the Basque newspaper Gara, before announcing its unilateral dissolution in May.
National political instability since the 2000s
Contemporary Spain begins with José Luis Rodríguez Zapatero's first term in office (2004-2008), which was marked by economic growth and social reforms (including the mass regularization of undocumented migrants, the legalization of same-sex marriage with adoption rights, and the end of compulsory religious education in state schools). However, during his second term (2008-2011), Zapatero came up against the economic crisis, which hit the country very hard. At the end of 2008, Spain officially entered a recession, and unemployment exceeded the symbolic 20% mark in spring 2010. This period was also marked by the emergence of the "indignant" movement. Despite the implementation of an austerity plan, the Socialists lost the confidence of voters. In the early elections of November 2011, Mariano Rajoy (PP) won a landslide victory and an absolute majority to govern. He then implemented a severe austerity policy, which did not prevent the country from sinking into recession, with unemployment at 26% - and popular anger rising violently. Pressure from the markets led the government to ask for a bank bailout in the summer of 2012. The same year, the Basque nationalists return to power: Iñigo Urkullu becomes the fifth lehendakari in Basque democratic history. In October 2013, the European Court of Human Rights condemned the Parot Doctrine, a system of remission that allows prisoners to remain in prison until the statutory 30-year limit. This decision led to the release of dozens of Spanish prisoners, most of them ETA prisoners. In December 2019, the Basque Parliament calls for "the right of citizens to decide". In Catalonia, there are also signs of independence.
On the political front, 2015 was marked by the emergence of two newcomers, Podemos and Ciudadanos, who disrupted the classic two-party system of power in Spain. As a consequence of the results of the December 2015 general election, Spain experienced the longest governmental crisis in its history in 2016, with 315 days without a government at the helm. This crisis was partially resolved on October 29, 2016, with the election of Mariano Rajoy as President of the Government.
In 2018, Spanish Prime Minister Mariano Rajoy was overthrown by a motion of censure. He was succeeded by the socialist Pedro Sanchez, who became embroiled, and the country with him, in chronic instability. After two parliamentary elections without a majority, he was finally elected in 2020 thanks to a coalition unseen since Franco, with small left-wing parties including the Basque nationalists of the PNV and Podemos (radical left). In July 2023, new parliamentary elections were held in Spain, leading to deep divisions within parliament, to such an extent that Pedro Sanchez was unable to renew his government. This was finally achieved in mid-November, thanks to a far-left coalition.
Locally, the most recent elections were held on April 21, 2024, when the EH Bildu party (historically linked to the separatist organization ETA) tied with the ruling party (PNV), but failed to take political control of the Basque Country. The Socialist Party supports the PNV, allowing it to continue governing. EH Bildu's historic breakthrough is no less remarkable.
Economically prosperous regions
The Basque Country's industrial tradition dates back to the 19th century, with its iron mines. Until the early 20th century, it was Spain's only region of heavy industry, but the crisis of the 1980s led the region into industrial reconversion. The construction of the Guggenheim Museum on the site of a former steelworks is the symbol of this new phase. Several major companies listed on the Ibex 35 have their headquarters in the Basque Country. The primary sector, which is in decline, continues to flourish in the fishing industry, a traditional activity in the Basque Country. But it's the service sector that generates the most wealth, accounting for over 60% of Basque GDP.
In Navarre, industrial development came much later, towards the middle of the 20th century. Automobiles, food processing and capital goods are the most important sectors. Agricultural production and livestock breeding account for a small proportion of GDP, but enjoy a high profile, with several denominations of origin. Finally, the service sector generates over half of GDP.
In Rioja, the primary sector accounts for 7% of the region's GDP, mainly thanks to wine growing (over 40% of agricultural production). It is the third-largest agricultural region in Spain, after Extremadura and Castilla-La Mancha.
The importance of the tourism industry to the national economy has long been recognized. Spain is the second most visited country in the world, after France. However, tourism in Navarre, the Basque Country and La Rioja developed later than in the rest of the country. These regions focus on green, cultural, gastronomic and wine tourism, attracting mainly national tourists.
