Spain's economic integration into the European Union

Spain

The modern history of Spain's economy began with the end of Franco's reign in 1975. Since that time, Spain has embarked on a long modernization process that has resulted in the country becoming the world's 8th largest economy, and 5th largest in Europe. The nation's progress accelerated rapidly, beginning with its ascension to the European Union in 1986. By 1999, Spain was in the lead group in terms of euro adoption. While the company's economy has seen some short-term slowdown in the recent years, the banking system is well-equipped to whether the liquidity crisis due to high reserve requirements. However, unemployment has risen sharply and is expected to continue to rise, bringing about concern for Spain's long-term economic growth prospects (the Economist, 2009)

This paper will examine Spain's ascension to the EU and to world prominence from an economic perspective. The paper will begin with a brief explanation of economics and its role in the study of international relations. Then, an examination of Spain's economic integration into the EU will be conducted. It will be demonstrated that Spain's rise to prominence in the European Union has been driven by its successful economic integration with Europe in the decades following the downfall of the Franco dictatorship.

Economics and International Relations

Economics is the discipline of studying the ways in which economic actors interact. Economic actors range from simple units such as individuals to large, complex entities such as nations. With the possible exception of national security, economics is the most important determinant of international relations. Global trade provides nations an opportunity not only to enhance their wealth but also their political power. This is because the same underlying principles that drive economic power (control of valuable resources) control political power as well. The two types of power therefore share an inexorable relationship.

The nature of this relationship demands that the field of economics play an important role in the study of international relations. At the end of the Franco regime, Spain was economically and politically weak. The country's rise to political power has coincided with its rise as an economic power. This growth was facilitated by Spain's entry into the European Union and the European economic system.

Conclusion

Spain's expanded role in the international system relates directly to its economic renaissance. Few world powers gave the Spanish more than cursory consideration when the nation was poor and dependent on agriculture and fishing. Now, with a strong and diversified economy, Spain has returned to prominence in the world. The Spanish are restoring their historical influence in Latin America and in Europe. They have gained a seat at the table when the world's leaders meet.

As an actor in the international system, Spain is considered to be emergent. However, in context with its history, it may be more reasonable to view Spain as re-emergent. The movement that gained so much traction with EU ascendancy had been brewing for decades prior, from 19th century reformists to the post-Franco baby steps that the nation took, achieving steady pre-EU growth before membership allowed the Spanish economy to truly explode. Spain's strong new role in the world is a return to the role it once had. During the conquistador days, Spain was a global economic power with a big, diversified economy. Only be restoring size and diversification to its economy has Spain returned to political prominence. The degree to which this can be maintained in the face of the current economic contraction remains to be seen.

Works Cited:

Royo, Sebastian. (2006). The European Union and Economic Reforms: The Case of Spain. Real Instituto Elcano. Retrieved April 5, 2009 from http://www.realinstitutoelcano.org/documentos/243.asp

Gillespie, Richard & Youngs, Richard. (2001). Spain: The European and International Challenges. Retrieved April 5, 2009 from http://books.google.com/books?id=xEMBYaVyBBMC&pg=PA64&lpg=PA64&dq=economic+integration+spain+EU&source=bl&ots=T5vvb3X7h3&sig=xIbDN_rpFvGiQKq76qRjG0iHuPs&hl=en&ei=szPZSeCwHYG-tgerkrnUCw&sa=X&oi=book_result&ct=result&resnum=4

CIA World Factbook: Spain. (2009). Retrieved April 5, 2009 from https://www.cia.gov/library/publications/the-world-factbook/geos/sp.html

No author. (2009). Economic Data: Spain. The Economist. Retrieved April 5, 2009 from http://www.economist.com/countries/Spain/profile.cfm?folder=Profile-Economic%20Data