In 1986, two Iberian nations, Spain and Portugal, took a momentous step in their political and economic evolution by joining the European Union (EU). For both countries, membership signified the culmination of years of effort to modernize their economies, democratize their political systems, and integrate with Europe’s growing political and economic bloc. Over the past four decades, Spain and Portugal have undergone profound transformations, and their journey within the EU has not only reshaped their domestic landscapes but also their roles on the world stage.
The Road to EU Membership: A Historical Context
The path to EU membership for Spain and Portugal was shaped by pivotal historical moments. Both nations had been under authoritarian regimes: Spain under the rule of Francisco Franco (1939-1975) and Portugal under António de Oliveira Salazar (1932-1968), followed by his successor Marcelo Caetano until the 1974 Carnation Revolution. The 1970s marked a period of political awakening for both countries, as they transitioned from authoritarian rule to democratic systems.
The fall of these regimes laid the foundation for both nations to seek integration into Europe’s growing post-World War II order. EU membership was seen as essential for political stability, economic growth, and modernization. In 1986, after years of democratic reforms and economic adjustments, Spain and Portugal officially became members of the European Economic Community (EEC), the precursor to the EU. This moment marked a pivotal turning point in their modern history.
Economic Growth and Transformation: From Agricultural to Industrial Powerhouses
One of the most significant impacts of EU membership was the economic transformation Spain and Portugal underwent in the 1990s and 2000s. Before joining the EU, both countries had relatively underdeveloped economies, heavily reliant on agriculture, and lacking significant industrialization.
EU membership brought substantial economic assistance through structural and cohesion funds designed to reduce regional disparities and promote modernization. Spain and Portugal received billions of euros in aid, which were used to build critical infrastructure, improve education and healthcare systems, and support small and medium-sized enterprises. For Spain, this period also saw the expansion of its industrial base, allowing it to become one of the leading economies in the Mediterranean region.
Portugal, traditionally heavily dependent on agriculture, saw significant modernization. Productivity increased, and foreign investment surged. Over time, Portugal shifted toward more service-oriented sectors like tourism, technology, and telecommunications. By the 2000s, both nations experienced rapid GDP growth, reduced unemployment, and improved living standards for their citizens.
Political Stabilization: Strengthening Democracy and Rule of Law
Politically, Spain and Portugal’s membership in the EU provided a strong anchor for their newly established democratic systems. Before 1986, both countries faced the challenge of transitioning from authoritarian regimes to democratic governance. Membership in the European Union served as a powerful incentive for both countries to consolidate democratic practices, respect for human rights, and uphold the rule of law—values that are foundational to the EU.
For Spain, the EU helped solidify its democratic transition, which had been achieved with the 1978 Constitution following Franco’s death. European integration acted as an external guarantee that Spain would not revert to authoritarianism, and its democratic institutions grew stronger as a result.
Portugal’s democratic transition, which began with the Carnation Revolution in 1974, was similarly bolstered by EU membership. The country’s commitment to democratic governance and human rights aligned with EU principles, and EU membership provided Portugal with the resources and motivation to improve governance, reduce corruption, and stabilize its political system.
Challenges Along the Way: Economic Crises and Austerity Measures
Despite the successes, the journey of Spain and Portugal within the EU has not been without challenges. Both countries faced significant economic crises after the global financial meltdown of 2008. Spain’s economy, which had been growing steadily, was severely impacted by the collapse of the housing market, rising unemployment, and a banking crisis. Similarly, Portugal, already struggling with high public debt and low growth, sought financial assistance from the EU and the International Monetary Fund (IMF) in 2011.
In exchange for this assistance, both nations were required to implement strict austerity measures, including cuts in public spending, pension reforms, tax hikes, and labor market changes. These policies led to widespread protests, social unrest, and an increase in poverty and inequality.
While austerity measures helped reduce deficits and stabilize economies, they also fueled political discontent. In Spain, the rise of political parties like Podemos challenged the establishment, while in Portugal, the Socialist Party, led by António Costa, gained support by promising to roll back austerity policies and focus on social growth.
Despite these challenges, both Spain and Portugal gradually recovered, benefiting from EU-backed recovery programs, including the long-term recovery plans and NextGenerationEU funds, aimed at stimulating growth through digital and green investments in the wake of the COVID-19 pandemic.
Cultural and Social Integration: Embracing European Identity
Culturally, Spain and Portugal’s membership in the EU has fostered a greater sense of European identity. Over the past four decades, travel between EU countries has become easier, particularly with the establishment of the Schengen Area, which removed internal borders between most EU nations. This has allowed Spanish and Portuguese citizens to explore other European countries, experiencing new cultures and enhancing tourism in their own nations.
Moreover, both countries have benefited from the EU’s focus on social cohesion, equality, and human rights. EU policies promoting gender equality, labor rights, and environmental protections have influenced domestic policy in both Spain and Portugal, helping them improve standards of living, reduce poverty, and promote social justice.
Looking Forward: Spain and Portugal’s Role in the EU
As Spain and Portugal celebrate four decades of EU membership, both countries look to the future with optimism but caution. They continue to face challenges such as economic inequality, unemployment, and political polarization. However, their integration into the EU has undoubtedly transformed them into modern, prosperous democracies.
In the broader EU context, Spain and Portugal’s membership remains a symbol of the power of European integration. Both countries have been ardent supporters of the EU’s enlargement, advocating for the inclusion of new member states from Eastern Europe and the Balkans. As members of the EU, Spain and Portugal will continue to play a critical role in shaping the union’s future, particularly in areas such as climate change, digital transformation, and foreign policy.
Conclusion: A Journey of Transformation
The journey of Spain and Portugal within the European Union over the last 40 years has been one of remarkable change and progress. From the economic growth of the 1990s to the challenges of the 2008 financial crisis, both countries have shown resilience in overcoming obstacles and building prosperous futures. As they continue to adapt to new challenges and opportunities, their journey within the EU remains an essential chapter in the story of European unity and cooperation.