Spain
Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World Wars I and II, but suffered through a devastating civil war (1936-39). In the second half of the 20th century, it played a catch-up role in the Western international community. Spain was internationally isolated under General Franco's post-war dictatorship, but it began to recover from recession in the 1950s, with a rise in tourism and aid from the US. After Franco's death in 1975, the authoritarian regime transformed into democratic government with King Juan Carlos as head of state.
Spanish territory includes the Balearic Islands, the Canary Islands and two North African enclaves. Autonomy levels for each of mainland Spain’s 17 regions remain politically contentious. Some have greater rights than others, especially in regard to language. In June 2006 a Catalan referendum backed by the central government gave the region greater autonomy. The Catalans won nation status within Spain and the region's parliament gained extra powers in taxation and judicial matters. The complex regional balance continues to evolve.
One of Spain's most serious domestic issues has been tension in the northern Basque region. The Basque separatist group Eta is believed to have been responsible for the deaths of more than 800 people since it carried out its first killing in 1968. A ceasefire in the late 1990s ended with a return to violence. In 2001, Eta switched its targeting from government installations and personnel to Spanish tourist destinations including coastal resorts and transport hubs such as airports, seaports, train stations and highways. Eta claimed responsibility for a number of small explosions throughout 2005 in and around Madrid. Eta then declared another ceasefire in March 2006, saying it wished to see the start of a democratic process for the Basque region. The move divided opinion in Spain. The prime minister indicated a few months later that he would start talks with the organization.
Socialist Workers' Party leader Jose Luis Rodriguez Zapatero became Spanish prime minister in a surprise election victory over Jose Maria Aznar's conservative Popular Party in March 2004. Polling was overshadowed by a series of explosions on Madrid commuter trains in which at least 200 people died just days beforehand. In April 2004, an explosive device was found on train tracks between Madrid and Seville and defused by authorities. Aznar's government was quick to blame the Basque separatist group Eta for the bombings, suspicions quickly mounted that the Islamic militant group al-Qaeda was involved. A group purporting to represent Al Qaida claimed responsibility two days after the blasts. Several people suspected of having links with Islamic militancy were later detained in connection with the attacks. The former prime minister had allied himself closely with the positions of Washington and London on military action in Iraq and sent 1,300 troops to serve with multinational forces there. On taking office, Zapatero described both the war and the occupation of Iraq as a "huge disaster" and said that he would withdraw Spanish forces within months unless the UN assumed control there. He said that his first priority would be to counter terrorism and called for a new international alliance against it.
The recent economic and political turmoil experienced by Argentina has adversely affected Spanish companies, which invested EUR 45 billion there over the last decade. Five large Spanish companies, including oil company Repsol-YPF and power company ENDESA, that alone account for about three-quarters of the trading volume on the Madrid stock exchange, are expected to lose billions of euros because of the default on Argentine government debt and the devaluation of the Argentine peso.
Spain is highly dependent on imported oil, leaving the country economically vulnerable to world oil price fluctuations. Spain's economic growth and accelerated industrialization associated with European Union (EU) membership have fueled energy demand, up 75% since the mid-1970s. Electricity demand is growing at a particularly rapid rate of 6% per year, reflecting a need for greater investment. Further energy demand increases are expected to be met largely with natural gas imports. The increasing use of natural gas has created a new dependency on Algeria, from which Spain obtains 60% of its natural gas imports. With an extensive gas network now in place, Spain's demand for natural gas is expected to increase dramatically during the next few years.
Basque separatists in Madrid and throughout the Basque regions in northern Spain have carried out bombings in the past, but there have been none since the most recent cease-fire was declared. Eta’s efforts have historically been directed against police, military, and other Spanish government targets, although in 2001, Eta announced its intention to target Spanish tourist areas, and did so. Popular resentment against Eta has grown in recent years, including within the Basque region itself. All political parties in Spain have condemned the actions of Eta, with the exception of the EH-HB Party, which is widely viewed as being the political arm of Eta itself.
A smaller Marxist group, GRAPO, has also mounted several attacks since 1999. In addition, Islamic militants linked the al-Qaida began targeting Spain in 2004 (see above).
The main concern for travelers is crime (see below).
