ABSTRACT
In exploring the ways in which the integration of the Spanish economy in the EC affected the socialist government's economic policies, this article sheds light on the set of economic strategies left to social democratic governments in an increasingly interdependent world economy. To examine the relationship between economic internationalization, European integration and Leftist economic policies, this article is organized as follows. The chapter examines Spain's integration in the European Union (EU). It then describes the set of macroeconomic policies developed by the socialist government. The attitudes of the Spanish political parties merely reflected the overwhelming public support for the process of European integration. The strength of Spain's commitment to the European project hardly declined over time. After joining the EC in 1986, the Spanish government announced the integration of the peseta into the European exchange rate system (ERM) in June 1989.
