Spain in the world economy

During the period 1975-94 the political economy of Spain became more closely integrated into the world economy. In particular, membership of the European Community altered the pattern of external relations and redefined the position of Spain in the world from a protected national economy to an economy embedded in one of the world’s core trading regions and within the corporate space of multinational companies. Integration followed from a general reduction of protectionism, increased liberalization throughout the economy and significant penetration by foreign capital. This was accompanied by the transfer of decision-making to supranational authorities and foreign multinational companies. It exposed the economy to rapid structural change, as the economy was drawn into the rapidly evolving European and global process of restructuring which demanded greater flexibility to maintain competitive advantage. Despite the obvious economic strains involved and the impact on cultural institutions, national identity and sovereignty, the desire to ‘modernize’ overrode any temptation to revert to national autonomy.