ABSTRACT
The current situation of the Spanish economy arises from the significant changes experienced by the country over recent decades. Forty years ago, a semi-autarchic system still persisted, based on post-war isolation from the rest of the world under the Franco regime. After 1959, a period of liberalization and opening-up to the outside world was initiated, later incorporating four decisive processes: the transition towards democracy between 1975 and 1978; the entry of Spain into the EC in 1986; the economic convergence required by the Treaty of Maastricht in 1992; and the successful fulfilment of the conditions established for the entry to European Economic and Monetary Union in 1998. The impacts of all these positive steps seemed to come together in the 1995-2000 period. Economic growth rates were higher than in most European countries, private sector dynamism was growing, unemployment rates were significantly reduced, the public sector was restructured and regulation reduced.
