ABSTRACT
The political regime allowed economic liberalization after 1960; nevertheless, its impact did not change the regional disparities between the less and more developed regions of Spain. In spite of all that, the Spanish economy became quite modem on the eve of the death of Franco on 20 November 1975. In the Article 131.2 of the Spanish Constitution, it clearly enshrines the foundation of a committee for the participation of the trade unions and other professional, entrepreneurial, and economic organizations. In the 1990s, the autonomous communities developed their own systems of interest intermediation, which were working well in certain regions and less so in others. The decentralization and regionalization of industrial relations is being complemented by national indicative pacts, which shape the bargaining boundaries at the regional level. The integration into the European Union was a major factor in stabilizing the political economy of Spain, particularly in view of decentralizing production and economic processes.
