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About Spain

Spain Population: 40,280,780 (July 2004 est.)
Languages: Castilian Spanish 74%, Catalan 17%, Galician 7%, Basque 2% note: Castilian is the official language nationwide; the other languages are official regionally.
Capital: Madrid
Government Type: Parliamentary Monarchy.
Independence Day: Seizure of Granada in 1492; this event completed the unification of several kingdoms and is traditionally considered the forging of present-day Spain.
Legal System: civil law system, with regional applications; has not accepted compulsory ICJ jurisdiction.
Currency: euro (EUR)

Executive Branch:

Chief of State: King JUAN CARLOS I (since 22 November 1975); Heir Apparent Prince FELIPE, son of the monarch, born 30 January 1968.

Head of Government: President of the Government Jose Luis RODRIGUEZ ZAPATERO (since 17 April 2004); First Vice President (and Minister of the Presidency) Maria Teresa FERNANDEZ DE LA VEGA(since 18 April 2004) and Second Vice President (and Minister of Economy and Finance) Pedro SOLBES (since 18 April 2004) cabinet: Council of Ministers designated by the president.

American Embassy: Serrano 75, 28006 Madrid
Mailing Address: PSC 61, APO AE 09642
Telephone: [34] (91) 587-2200 FAX: [34] (91) 587-2303

General Overview: 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, Spain has played a catch-up role in the western international community; it joined the EU in 1986. Continuing challenges include Basque Fatherland and Liberty (ETA) terrorism and further reductions in unemployment.

Economic Overview: Spain's mixed capitalist economy supports a GDP that on a per capita basis is 80% that of the four leading West European economies. The center-right government of former President AZNAR successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 January 1999. The AZNAR administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. Unemployment fell steadily under the AZNAR administration but remains high at 11.7%. Growth of 2.4% in 2003 was satisfactory given the background of a faltering European economy. Incoming President RODRIGUEZ ZAPATERO, whose party won the election three days after the Madrid train bombings in March, plans to reduce government intervention in business, combat tax fraud, and support innovation, research and development, but also intends to reintroduce labor market regulations that had been scraped by the AZNAR government. Adjusting to the monetary and other economic policies of an integrated Europe - and reducing unemployment - will pose challenges to Spain over the next few years.

International Disputes: Since Gibraltar residents voted overwhelmingly by referendum in 2003 against a "total shared sovereignty" arrangement, talks between the UK and Spain over the fate of the 300-year old UK colony have stalled; Spain disapproves of UK plans to grant Gibraltar greater autonomy; Morocco protests Spain's control over the coastal enclaves of Ceuta, Melilla, and the islands of Penon de Velez de la Gomera, Penon de Alhucemas and Islas Chafarinas, and surrounding waters; Morocco serves as the primary launching area of illegal migration into Spain from North Africa; Morocco rejected Spain's unilateral designation of a median line from the Canary Islands in 2002 to set limits to undersea resource exploration and refugee interdiction, but agreed in 2003 to discuss a comprehensive maritime delimitation; some Portuguese groups assert dormant claims to territories ceded to Spain around the town of Olivenza.