Spain in the EU: fifteen years may not be enough

Article is part of a special issue entitled 'Spain and Portugal in the European Union. The first fifteen years'.
Article abstract:

The accession to the EEC in 1986 was a crucial step in the process of economic and political modernisation and a key factor behind the internationalisation and globalisation of the Spanish economy. Integration has required a set of measures (increased competition, privatisation of public enterprises, industrial restructuring, deregulation) that have translated into efficiency gains. In addition, a more stable macroeconomic framework has reinforced these efficiency gains. The process of real integration could have been even more successful, however. The slow pace of reform, in particular in the labour market, with high labour costs leading to persistent unemployment, and an inappropriate policy mix in the late 1980s, prevented Spain from reaping the full benefits of integration. Finally, the role of Structural Funds has also been crucial. These allowed for the construction of public infrastructure vital for private sector productivity and real convergence.