Spain and European Union: Economic History


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Professor Nuria Hernandez Nanclares jointly with her students from "The economics of Spain and the EU" have done a poster session about spanish and the EU economic history.
Thank you everybody for your nice work!!!

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Spain and European Union: Economic History

  1. 1. The economics of Spain and European Union: Economic History 1940-2002 Dra. Nuria Hernandez Nanclares Poster session year 2013-14
  2. 2.  Characteristics After the civil war there was a period of starvation and isolation. Dictatorship started, ruled by F. Franco, who established the autarky. The government control society based on self-suficient system. Loss of human capital.  Consequences - Hunger => The black market (charactarized in higher prices than the official market) - Poverty (Reduction of the relation with the exterior).  The economic policy - Heavy industrialism (creation of INI and RENFE in 1942) - Price intervetion and control overvalued currency - Abolisment of free trade unions.  Since 1950 the economy started to recover very slowly. SPANISH ECONOMY (1940 – 1950) GROUP 3 Lucia Garcia Carlota Figaredo Sira Trespalacios Daniel Dlugolecki Hector Santos Cristina Honorato
  3. 3. SPANISH ECONOMY 1960 - 1975 During the 60’s and 75’s the economy in Spain was expanding, that was due to the fact that the country was not as closed as it was by the end of the Spanish Civil War (1936-1939). We started to produce mass on chain production system thanks to the foreign aid. Also during that time there was a massive movement of population from the rural areas towards the cities. Because of the warm weather and low prices, Spain received a lot of tourist from the Northern Europe, which helped to improve the negative trade balance. Characteristics: This period was characterized by a Technological Transformation, which implied changes in the production systems in the Industrial Sector and also in the machinery used in the Agricultural Sector (Green Revolution). This lead to a 6% growth in the GDP, but it was not enough in order to affront the economic problems. Although the country was increasing its trade, thanks of the improvements of relationships with other countries, protectionism was still very high, because of tariffs and trade barriers. Also this period was characterized by the emigration of part of the population towards countries in Europe (Belgium, Germany…) and South America (Mexico, Argentina…) Political Features: Taking into account that in Spain was imposed a dictatorship; it was only allowed one political party, which was in this case an extreme right-handed political structure. In this period things started to change and it developed thanks to the Technocratic Ministers, who were linked to the Opus Dei and gained large quotas of influence. They tried to favor economic modernization without question the dictatorship. The INI was still a very strong organization but it incurred huge spending in public resources, which served very little to help the economic situation. 1960: Spanish Economy initiated a strong growth due to the stabilization plan of 1959. 1964: The 2nd major Fiscal Reform took place. It was implemented by Mariano Navarro Rubio, and it was not an in- depth reform. 1969-1975: the growth rate of the industrial sector was 10% which was one of the highest register in Europe after the WWII, and only comparable to China nowadays. 1973: Oil Crisis. 20-D Murder of Carrero Blanco by ETA. 1975: Francisco Franco’s death. Beginning of the Transition into Democracy. Social Structure: While talking about Social Structure of the Period we get into a controversial point of view, due to the differences between quality and style of life. The Style of life was improved due to a wider choice of entertainment, the increase in imports, which lead to a greater possibility of choices of goods, the increase in the use of the television at home, the introduction of football as a show, etc The quality of life was worse than in the rest of Europe given that the Education level and Health services were very poor and simple Jürgens, Lisa Sierra Hernández, Ana Mercedes Villa Velasco, Patricia Alonso Garitano, Juan Manuel Ardeleán, Annamária Arenas Zapata, Pablo Carretero Fernández, Jorge 1972: Women get their independence, they get the legal majority and can start to work without the consent of their husbands or fathers. 1963: The Govern set its preferences and economic objectives. The private sector start to get fiscal and financial advantages.
  4. 4. INTRODUCTION: at the begining of this period, a very important event which characterized the economic period took place FRANCO´S DEATH on 20th November 1975: • Decrease investment •Increase the level of prices •Trade deficit: external debt After Franco´s death, the new president of the governement was Adolfo Suarez. A transition from dicctatorship to democracy stated: •1st STEP: Spanish constitution 1978 1977: Moncloa´s Agreement: there was a stuggle against inflation characterised by: •Restrictions of the monetary supply •High interest rates •Salaries stagnation 1980: elections, the democratic regime was starting to consolidate The Maastrich Treaty created the three pilar structure drawing a line between: supranational and intergovernamental policy area. Increase in European economic integration •Comen currency •Free trade among membersIn 1981 Antonio Tejero tried to impose another dictatorship but he failed and went to jail. At 1985 Spain finally joined to the European Union and adoped the Mastrich Treaty.