40 Years of EU Membership: How Europe Changed Spain

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Felipe González signs the treaty for Spain's accession to what is now the EU /Foto: La Moncloa

Spain celebrates a significant anniversary: On June 12, 1985, the Treaty of Accession of Spain to the European Economic Community (EEC) was signed, which came into force in 1986. This historic step marks not only the transition to democracy after the Franco dictatorship but also the beginning of a remarkable socioeconomic development that has profoundly shaped Spain. From an agricultural country to a leading export power – Spain’s journey within the European Union has been dynamic, challenging, and marked by profound changes.

The Path to Europe: Democracy and Personal Ties

The legend has it that Spain’s accession to the European Union (EU) was primarily motivated by the obvious transition to democracy. While dictatorships had no place in modern Europe, the close relationship between the then Spanish Prime Minister Felipe González and German Chancellor Helmut Kohl also played a crucial role. The signing of the treaty on June 12, 1985, 40 years ago, not only confirmed an important political step but also showed how personal relationships and forged friendships can enable historical progress.

Spain went hand in hand with Portugal to leave behind dark times of autocracies and exclusion, seeking prosperity within the European community. However, this path was not a one-way street to success: from the initial boom to the dynamics of the 2000s, to the 2008 crisis, the Covid pandemic, and the energy crisis, Spain experienced a true rollercoaster ride within the EU.

Economic Revolution: From Agricultural Nation to Export Power

A look at the data reveals the profound transformation of Spain since its accession to today’s European Union. In 1985, Spain was still a power in the primary sector with a balanced agricultural trade balance. The agricultural sector then contributed almost 7% to the national GDP. Today, it accounts for only 2.7%, reflecting a profound change in the Spanish production structure. This development is partly due to integration into the European Common Agricultural Policy (CAP), which brought both opportunities and adjustments, as in the case of the dairy sector.

Today’s picture is impressive: Last year, the total value of agricultural production in Spain reached 68.340 million euros and agricultural income 37.759 million euros. Spain achieved a historical surplus in agri-food trade, with record exports of over 71.000 million euros. This has established Spain as the second-largest export power in this sector within the EU, surpassed only by the Netherlands. In the fisheries sector, Spain remains a leader in the EU, although the fleet has been reduced by almost 30% since 2000.

Spain’s Financial Shift: From Recipient to Contributor

Since its accession in 1986, Spain has evolved from a net recipient of European funds – receiving up to 0.8% of its GDP in development aid – to a net contributor in recent years. In 2023, Spain contributed over 13.500 million euros to the EU budget and received around 12.100 million euros. At the same time, it was one of the largest beneficiaries of the “Next Generation” fund, receiving almost 48.000 million euros by 2024.

Spanish GDP has significantly increased from around 346.000 million euros in 1986 to over 1.5 trillion euros in 2024, impressively reflecting the economic modernization partly enabled by these funds. The economic benefits of EEC membership were immediately noticeable: in 1986, the share of total exports to the EEC increased from 53% in 1985 to 60%, while the EEC’s share of the Spanish import market increased from 36% to 48%.

Milestones and Challenges Along the Way

The accession process to the European Communities began long before Felipe González and was already initiated under Adolfo Suárez. The 1990s were characterized by a massive boost from important cohesion funds that enabled the expansion of infrastructure and the modernization of the country. In 1992, the Olympic Games in Barcelona and the Universal Exhibition in Seville symbolized this leap into modernity. The Maastricht Treaty in the same year was crucial for the creation of the European Union and the future single currency.

Esteban González Pons, Vice-President of the European Parliament, emphasizes the importance of Europe as the “best place in the world to live, thrive, and be free.” However, he also warns of the challenges outside the Union. Javi López (PSOE), also Vice-President of the European Parliament, describes Spain’s development in the EU as a “success story” that contributed to the stability of democracy and the establishment of Spain as a space of tolerance, freedoms, and rights.

Under José María Aznar, Spain consolidated its economic stability and made progress in European integration. In 1999, the Euro was introduced as an accounting currency and in 2002 as cash. Spain’s active participation in EU enlargement to the East opened its labor market. Under Zapatero, social progress was at the forefront, such as the adoption of same-sex marriage in 2005, positioning Spain as a pioneer in LGTBI+ rights within the Union. The Lisbon Treaty in 2007 reaffirmed Spain’s commitment to greater integration.

Mariano Rajoy’s term was marked by the economic and financial crisis. In 2012, Spain requested a European bank rescue package of up to 100 billion euros. A key moment was also the strong support from the EU for the Spanish state during the political crisis in Catalonia in 2017.

Spain as an EU Engine: Opportunities and Future

Elsa Arnaiz, founder and president of Talento para el Futuro, sees EU membership as “everything” for Spain and emphasizes the leadership position the country holds today. The EU is for her “a guarantee” that many countries do not have. She sees “a golden opportunity” to maintain leadership in European values.

Spain, along with France, Germany, Italy, and Poland, is among the top 5 most important states in the EU. Although its leadership role has not been fully achieved, it has recently pushed for debates such as electricity market reform and advocated for the approval of the Recovery Fund in 2020 together with Italy.

Daniel Gil, an EU-specialized analyst, highlights the importance of accession in reducing the gap between Spain and other European countries. Massive investments in infrastructure led to significant economic growth and the internationalization of the Spanish economy. However, Gil also recognizes the braking effect of the 2008 crisis, from which Spain has not yet fully recovered within the EU.

Spain’s 40 years in the EU is a story of unparalleled transformation, economic progress, and the strengthening of democracy. Despite all challenges, the European Union remains an indispensable framework for Spain’s prosperity and its role in the world.