Spain | 40 years of economic transformation in the EU

Summary

In 1985, Spain joined what was then the European Economic Community. Four decades down the line, the balance is very positive in terms of growth, employment, and well-being, although it also reveals certain outstanding issues that Spain would do well to address.

Key points

• Key points:
• That historical milestone effectively anchored Spain to Europe and represented the most significant step forward in modernizing the country following the process of opening up that had begun with the Stabilization Plan of 1959. GDP per capita in purchasing power parity has multiplied by 2.5. The gap with the then 15 countries that made up the EU has been reduced by 15 percentage points, with Spain reaching 88.1% of the average in 2025.
• For example, the employed population has almost doubled, from 11 to more than 21 million people. Women, who in 1985 represented just 29% of the employed population, nowadays account for almost 47%.
• However, the process of convergence in per capita income saw a change of tide with the Great Recession. In 2008, Spain reached 69% of the GDP per capita of the United States, yet since then it has progressed more slowly than expected.
• Productivity, the main driver of long-term growth, remains a structural weakness. The country must also improve institutional quality and the functioning of its public administrations.
• Europe is once again offering a framework of opportunity amid so much global disruption and geopolitical risk. Spain cannot merely accompany the change; it must play a leading role.

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