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"THE EVOLUTIONARY PROCESS OF SPANISH MEMBERSHIP TO THE EUROPEAN COMMUNITIES:
MILESTONES AND LEADING CONSEQUENCES*"

Borja Cortés-Bretón Brinkmann

Diplomat

INCIPE Research Associate

Translated by Dr. Damian R. Sanges d’Abadie
INCIPE Research Associate


“Europe will have to take account of Spain and we Spaniards are Europeans. It is imperative for both sides to acknowledge this two-fold reality and for all to assume the consequences that it entails. It is a necessity of our times”. With these words, pronounced before a full session of the Spanish Cortes and before the Council of the Kingdom on 22 November 1975, on the occasion of his proclamation as King of Spain, Prince Juan Carlos sought to underline what would emerge as one of the leading themes of Spain’s foreign policy at the outset of the Political Transition that followed General Franco’s death, namely, Spain’s membership to what were then known as the European Communities.

Being part of “Europe” was interpreted within Spain as an unequivocal symbol of compromise for, and defence of, the fundamental values and democratic principles inherent in the process of European construction. In this perspective, it is noteworthy to stress that an earnest Spanish political interest in getting closer to Europe had already emerged under the regime of General Franco, at the beginning of the 1960’s, as a means of legitimizing Spain’s political system from the outside. Nevertheless, Spain’s request for membership of the European Communities, formally presented by Foreign Affairs Minister Fernando Maria Castiella on 9 February 1962, was firmly rejected by the so-called “Birkelbach Report”, named after a Socialist Member of the European Parliament. Spain did not fulfil the basic prerequisites of a state where Democracy and the rule of Law prevailed, despite Spain’s markedly different international standing in the 1960’s in comparison with that of the 1940’s.

Despite the fact that the letter of application for Spanish membership to the European Communities had failed to reach a positive outcome among the other European partners, Spanish foreign policy henceforth strove to secure a tariff and trade-oriented commercial agreement with the European Bloc. These efforts would be successfully rewarded by the conclusion on 29 June 1970 of a “Spanish-European Communities Preferential Commercial Agreement” that, in effect, would underpin Spanish commercial relations until 1986. By its terms, both parties proclaimed their mutual desire to work for a gradual abolition of barriers to trade for the majority of exchanges, in two definite stages: an initial period, of a duration of at least six years, and a second phase, that would begin, by common accord between the parties, once the necessary conditions were met. In essence, Spain was attempting to reach its objective of belonging to the “heart of Europe” through the establishment of a “Preferential Commercial Agreement”. The European Communities, however, made quite sure that the final outcome of this process would only be reached once the prevailing political realities of Spain allowed it and, therefore, this development would not take place until General Franco’s death in November 1975.

Throughout this paper, and significantly, with the backdrop of the likely forthcoming start of the negotiations for Turkish accession to the European Union, on 3 October 2005, particular emphasis will be placed on three fundamental aspects of Spain’s own process of accession that, in substance, highlight the difficult road that Spain had to undertake in the distant 1970’s, to be able to integrate itself fully in the European Union. At the outset, greatest emphasis will be placed on the negotiation and accession process itself. Why was the political rapprochement of Spain to the European Communities so complex and what were the most conflictive issues? Secondly, particular consideration will be placed upon one of the main dimensions on which Spain had to devote its greatest efforts – the radical overhaul of its economic and industrial base. From this standpoint, it will also be of particular interest to reflect on how far Spain’s economy and society have evolved since then, precisely due to these reforms. And, lastly, some consideration will be given to the image of Spain within the European Union. Despite the fact that, initially, our external image was in the main quite negative - no one could get used to the reality of entering into a dialogue with a country like Spain, that a newspaper in Rotterdam had described as “a strange bird that knocked at the Community’s doors” - Spanish diplomacy succeeded in transforming this early appreciation through practical contributions, that were without doubt of substantial relevance for the evolution of the future European Union.
1. The Process of Accession of Spain to the European Communities: Main Difficulties

The primary goal of the Transition Governments was to overcome the external legacy bequeathed by the Franco regime. While there had, undeniably, been a substantial evolution in Spain’s place in the international community from the immediate aftermath of the Second World War - in 1955 Spain had joined the United Nations and had fully embraced and subscribed to the main underlying principles and guidelines that governed the leading international institutions as the OECD, the IMF, the World Bank or even the GATT Negotiating Rounds - the authoritarian nature of the regime continued to devalue Spain’s prospects on the international stage and, thereby, ensured its continued isolation.

Moreover, beyond this unfavourable context for Spain’s image in the world, additional difficulties would arise with the gradual demise of the regime of General Franco. The “Burgos Trial”; the case “Puig Antich”; the case of “Bishop Añoveros” or the capital punishments by firing squads of September 1975, all caused great reverberations and unease across Europe. A Spain that sought to get near to “the heart of Europe” by promoting its economic and commercial attributes and by striving to conform to its principles and values would quickly find itself marginalised, and as an outcast, as a result of these developments. Relations with Europe effectively reached a nadir and this also included a break-up of the dialogue undertaken to ensure a greater equilibrium to the 1970 “Preferential Commercial Agreement”.

Thus the initial steps undertaken towards a progressive “normalisation” of foreign relations did not result in a rapprochement of Spain with the European Communities. It is possible to point out a series of milestones, prior to the beginning of negotiations with the European Communities around September 1979, that reflect the progressive normalisation of Spain’s political regime with the outside world during the Transition. The signing of a new Treaty of Friendship and Cooperation in January 1976 with the US Administration would enable the beginning of a gradual process of normalisation of relations with the United States. The renovation of relations between Church and State, resulting from the accord signed between Spain and the Vatican in Rome in July 1976, would lay the groundwork for the subsequent Concordat of January 1979 that would enable a dialogue between Church and State fully compatible with the values of the recently-approved democratic Constitution. The ratification of several international instruments of primary importance revealed Spain’s incipient compromise with democratic values (notably the ratification of International Agreements governing Civil and Political Rights, Economic, Social and Cultural Rights in April 1977 and the signing in November 1977 of the European Convention on Human rights). Finally, other instances that highlighted the progressive external normalisation of Spain’s political system were provided by the increasingly universal character of Spain’s diplomatic relations, establishing links with countries that had previously refused to recognize Franco’s Spain, fundamentally due to the political nature of its regime with its authoritarian character. In this light, relations were normalised with Mexico, Rumania, Bulgaria, Poland, Czechoslovakia, Vietnam, Angola, Mozambique and several other countries, but significantly Spain did not reach full diplomatic relations with the state of Israel until 1986, precisely within the ambit of Spain’s accession to the European Communities.

As far as the process of Spanish accession to the European Communities is concerned, the official request for membership was formally presented by Spain’s Foreign Minister Marcelino Oreja on 28 July 1977. This second request for entry was framed within a different historic context from that which had prevailed in 1962. Spain had approved the Statute for Political Reform, which provided a clear break in terms of prevailing values and principles with those of the old regime. In April 1977 the Communist Party was legalised. The cumulative effect of these developments, together with the call for democratically-based general elections - finally held on 15 June 1977 - was that the European Parliament, as the expression and the embodiment of the democratic conscience of the European Communities, formally acknowledged that the Suarez Government was fulfilling its democratic engagements, thereby lifting the political veto imposed by the previously mentioned “Birkelbach Report” in 1962. Nevertheless, practical negotiations with Brussels would not begin until September 1979 - following a Council opinion, on 19 December 1978, coming out in favour of Spain’s request for membership and in the aftermath of a Report from the Commission, establishing that accession negotiations with Spain should formally begin in February 1979 - revealing the degree of reluctance and the hurdles Spain had to face in its attempt to get closer to “Europe”.
The Spanish request for membership was greeted with a mixture of cheerfulness and apprehension on the part of the Member States of the European Communities. As for the applications of Greece and Portugal, Spain’s accession application reflected the advance of Democracy in Europe and marked an acknowledgement of the prestige that the European Communities enjoyed in the international community. However, unlike the other two applications, the Spanish approach raised serious questions given the character and size of its economy. In Brussels and in some European capitals, and especially in Paris, a notable degree of anxiety was generated by Spain’s agricultural sector; by the size of its fishing fleet and the need to restructure it in order to contend with the growing competitiveness of Asian fleets; by the issue of the mobility of the labour force; or by the relative under-developed character of some of Spain’s regions.

However, the underlying cause for the protracted and difficult character of Spanish negotiations was, moreover, the complex and unique period Europe was going through. The two oil crises of the 1970’s together with the lack of internal reforms of the Community institutions had led to a sort of structural paralysis - widely described at the time as “eurosclerosis” - that affected the European construction process. In this environment, the goals and rightful claims expounded by Spanish diplomacy had to contend with an adverse historic context, beyond the clear reticence expressed by some specific member states.

Two statements, made around the month of February 1979, are indicative of the extent of the difficulty Spain would encounter in the negotiating process it was about to embark on. On the one hand was the statement made by the European Commission President, Roy Jenkins, to journalists at the close of the inaugural negotiating session: “the road undertaken today by Spain may be compared to the heroic deeds performed by this great country five hundred years ago”. This was undoubtedly an over-statement with romantic tones, harking back to Spain’s past, but it nevertheless revealed the perception of Spain that prevailed in the Community Institutions and the difficult road Spain still had to cover, if it wanted to join the European Communities. On the other hand, an equally clear image of the true state of events and where the main obstacles lay for Spain, at the outset of its negotiations, were revealed by the pronouncements to the newspaper Le Figaro by Council President and French Foreign Trade Minister Jean Francois Poncet, at the close of that same inaugural session: “The enlargement, especially with the entry of Spain, raises risks, notably in the area of Mediterranean agricultural products and wines […].

As far as the negotiating process itself is concerned, the endeavour would last a little over six years. Given that the ultimate objective of these negotiations would be the integration of Spain in the European Communities, the unfolding of the talks was underscored by two distinct parameters: one with an immutable character and the other changing, according to the outcome of ongoing deliberations among the Member States. The fixed parameter referred to the compulsory requirement for all candidates to subscribe fully to the so-called “Acquis Communautaire”, that is the complete body of rules and legislation governing the European Communities. The variable consideration of the negotiations referred to the periods of transition that were envisaged for respective candidate states in which to undertake their integration, so that during these times they could gradually assume the Community legislation into their national legislative and judicial frameworks. Currently, these arrangements are commonly known as the “Copenhagen Criteria”, following their formalisation on the occasion of the European Council of 1993, as these set out, for the future, the parameters to evaluate whether a candidate-state might or might not join the European Union.

The Spanish negotiating process would enjoy a decisive push under the German European Presidency, specifically during the Stuttgart European Council of June 1983. Spain’s position vis-à-vis the defence of the West - the entry of Spain in NATO in May 1982, under the Presidency of Leopoldo Calvo Sotelo - would reassure German Chancellor Helmut Kohl. The strong backing of the Chancellor would be translated in an extension of the necessary transition periods, so that the accession would not impact adversely on the stability of our economic system and so that, equally, the European Communities were able to deal without problem to the inevitable changes caused by the enlargement. Moreover, other issues were also satisfactorily resolved, like how to link the growth of national resources to the culmination of the internal reforms of the European Communities. All these issues would find their conclusive expression in the “Single European Act”.

Negotiations for Spain finally reached a positive outcome at the negotiating conference held on 28 and 29 March 1985. The Treaty of Membership of Spain to the European Communities was signed in Madrid on 12 June 1985, coming into force on 1 January 1986. Although Spain found herself in total isolation at the outset of the post-war, it had succeeded in forming part of the Community design; a goal that, effectively, was always uppermost on Spain’s foreign policy agenda.

2. Leading Economic Reforms: Consequences for Spain of its European Communities Membership

In spite of the diplomatic success that the “Preferential Commercial Agreement” with the European Communities” of June 1970 had meant for Spain - the accord was asymmetrical in favour of Spain - and of the sustained economic growth the country enjoyed, with a yearly average of nearly 8% until the first oil crisis of 1973, the country’s economic growth was significantly failing to be translated into a nationwide economic development, and moreover, the structural weaknesses that hampered Spain’s overall progress showed no sign of disappearing.

As Fuentes Quintana and Jaime Requeijo clearly stressed, Spain’s economic and industrial base suffered from four main weaknesses at the beginning of the 1970’s. In the first place, stood the weakness of the agrarian sector. The uneven paces of growth of the agricultural and industrial sectors would lead to important rigidities in the overall economic dynamics. The increasing labour force migration towards the industrial and service sectors was raising the salaries in agriculture, leading to the emergence of a system similar to that which prevailed in the European Communities. The consequence of these developments was a surplus of unwanted agricultural produce and a deficit in those most in demand.

Secondly was the serious economic difficulties experienced by the country’s economic activities, resulting from its heavy energy dependence that prevented their smooth performance and, thirdly, and closely related with this reality, stood the country’s weak industrial development. Spain had an excessive external dependence on imported energy. Thus while in 1961 demand for oil was around 28.8%, in 1974 it stood around 67.8%. This meant an increase in demand of nearly 170%. On the other hand, industrial development rested upon companies with weak financial structures - subject to bank loans and the vagaries of the financial markets - with a sizeable energy consumption and a high technological dependence. Finally, the fourth weakness that adversely affected Spain’s economic outlook and compromised its chances of a better future was the performance of our external sector. The combined result of Spain’s economic activities ensured a persistent trade deficit in our Balance of Payments.

Once the political Transition had been set on its course, in the aftermath of the first democratic general elections in mid-1977, the Government began to address the various deficiencies besetting the economy. One of the first measures that were taken was to devalue the peseta, with a view to improve the state of the Balance of Trade. However, it soon emerged that the reforms would require a wide-ranging consensus from all political actors and social forces of the time. This would lead to the signature of the so-called “Moncloa Accords” of October 1977, where an earnest appeal was made to the conscience and responsibility of all political and social groups, that they each assumed their share of the sacrifice in their respective activities that this national approach entailed.

The “Moncloa Accords” envisaged the introduction of two types of measures. On the one hand, there were policies designed to restore the health of the economy with the fight against spiralling inflationary pressures - through a monetary policy that sought to control disposable liquidity and a reduction in public expenditure - and the search for an equilibrium in the Balance of Payments, including with measures that set the exchange rate of the peseta to a more realistic level. On the other hand, it is important to note the considerable reforms that were intended for several distinct areas of public finances, as the reform of the fiscal system, in order to bring the old-fashioned system nearer to the European one, and to give a preferential backing to three main taxes, namely income tax, corporation tax and value-added tax; the reform of the financial system; the reform of the budget so as to better bring under control public expenditure; a new industrial relations framework to improve the activities of public industries, with a system to better monitor their performance and to assess their results; or the definition of a new framework of labour relations, through the elaboration of a “Workers’ Statute”.

The results of these measures were unprecedented. They allowed bringing to a halt the inflationary spiral, made worse by the oil crises of the 1970’s, and at the same time also ensured that the Balance of Payments swung into equilibrium. On the other hand, Spain would also attain a moderate improvement of its productive capacity arising from the previously-mentioned fiscal, financial and labour reforms. Nevertheless the very success of these measures ensured that the consensus that had earlier prevailed between all the political and social forces, and that had been instrumental in the signing of the “Moncloa Accords”, came to an end by the close of the 1970’s. This development, adding itself to the growing cracks and divisions appearing in the cohesion of the party in Government, and the second oil crisis would once again highlight the structural difficulties that had existed and had dragged the Spanish economy down even before Transition.

The electoral victory and coming to power of the Socialist Party - or as it is known under its official name as the Spanish Socialist Workers’ Party (PSOE) in November 1982, enjoying of an absolute Parliamentary majority, enabled the launch of a new political programme stressing an unequivocal and earnest economic readjustment based on the pursuit of a two-fold strategy: the attainment of sustained economic growth and the modernisation of the Spanish economy, to prepare it for its integration in the European Communities. Included as part of this strategy were uncompromising measures that would bring about a rationalisation of industry and that were still pending from the earlier stage of the “Moncloa Pact”. Additionally, other measures were aimed towards the areas of agriculture and fisheries; to ensuring a greater flexibility in the labour market; towards a rationalisation of the Social Security system, etc.

In spite of the hardships and social discontent that these wide-raging series of measures, by successive governments, have occasionally generated, the fact that they have had a positive outcome cannot be refuted. The reforms undertaken both by the PSOE and the Popular Party (PP) governments, broadly taking on board Brussels-led directives, have radically transformed the economic and social reality of Spain. In effect, while in 1986, the year of its accession to the Community, Spain’s economic performance and level of development meant that its national income barely reached 68% of the Community’s income; Spanish national income currently stands at over 87% of the Community’s average. Spain’s progressive narrowing of the gap in terms of economic growth and social wellbeing vis-à-vis the other European partners has not merely been a theoretical one, but has manifested itself in several practical ways. The greater rights enjoyed by women and their growing equality with men; rising opportunities for the young; the ongoing efforts undertaken in the ambit of the Environment or even the progressive cohesion among the various regions that make up our State, provide some examples of the wide-ranging changes that have been occurring in the daily lives of the people of Spain as a consequence of our belonging to the “European project”.

It may be possible to distinguish four distinct dimensions that highlight the impact integration in the Community’s dynamics has had onto our economic and social evolution. In the first place, one cannot fail to emphasize the phenomenal opening of our economy to the outside world. Spain is currently one of the world’s most open economies - with around 70% of its gross domestic product depending on external activities - and has emerged as the sixth largest investor in the world. Moreover, the European Union nowadays represents our leading commercial partner; around 60% to 70% of our overall exports and imports are directed towards the European Union.

In second place, there is no doubt that agriculture as a sector has been profoundly influenced by our belonging to the European Union. Nevertheless, beyond the painful adjustments that have been caused by the EU-led reforms in this area, it is important to stress the specialisation in productive capacities that has steadily taken place within the sector, as well as the rise in per capita income enjoyed by those employed in it, arising from Community’s instruments as the European Agriculture Guarantee Fund (FEOGA-Garantía). At present, agriculture contributes around 3.5% of our GDP and employs approximately 7.5% of our active labour force.

Spain’s industries and financial sectors have been equally affected by our membership. Successive privatisations of various state-owned companies; mergers and acquisitions and the advances in information technology have enabled Spanish and European companies to become competitive and to share in the benefits of an increasingly global economy.

Finally, it is important to point out one of the sectors that mainly reflects the fundamental changes that have taken place at the heart of our economy. The tertiary sector has been directly affected by European policies emphasising deregulation and liberalisation. Their impact has been the emergence of wider opportunities for choice for the consumer and lower rates, for example in the areas of energy and telecommunications. The service sector has become one of the main driving engines of developed economies, and for Spain it represents around 65% of our GDP and nearly 60% in terms of national employment.

3. The Image of Spain in the European Union: Main Contributions of Spain to the European Construction Process

Spain’s initial efforts to get politically closer to the European Communities were perceived at the outset, as was previously said, reiterating the words of a Rotterdam daily, as the approach of “a strange bird that knocked at the Community’s doors”. Spain not only had to manifest that it was able and willing to respect the fundamental values and principles underpinning Western democracies - yet, at times, some outcomes as the failed military coup of 23 February, raised into question the earnestness of Spanish political leaders - but it also had to undertake substantial efforts to radically overhaul its economy and society. This reality, to get it straight, was instrumental in determining Spain’s initial outlook within the European Union.

However, at a time when we are about to celebrate the twentieth anniversary of the signing of the Treaty of Membership of Spain to the European Communities, the image Spain projects at the heart of the European Union is radically different. Spain has transformed itself into a faithful partner and gone from playing only a passive role in the European construction process to an unequivocally leading role, sponsoring initiatives that, to a large extent, are going to shape the future of the “European project”. Spain is fully aware that by defending the interests of “Europe” on the international stage, it is also, at the same time, favouring Spain’s very own interests.

In this perspective, one of the leading contributions of Spain has been the introduction and gradual consolidation of the notion of a “Citizens’ Europe”. The concept of a “European Citizenship” presents a momentous significance for the present and future dynamics of the Union, and it was soon acknowledged that a failure to properly take this dimension into account, and not ensuring a meaningful involvement and participation of Europe’s citizens in the “European Project”, would entail that “Euroscepticism” and the “democratic deficit” would inevitably gain ground. “European Citizenship”, effectively, was fully enshrined by the Treaty of Maastricht, possessing a practical and direct aspect for the Union.

“European Citizenship”, however, has found acceptance within a wider context with the emergence of a true space of “Liberty, Security and Justice” and that reality, in the process, has confirmed the positive and constructive character of Spanish diplomacy. Additionally, the gradual coming into being of a Community-wide asylum and immigration policy; cooperation in the ambit of justice and legal affairs; the collective fight against crime, or the essential cooperation on the issue of terrorism have all increasingly come to be addressed collectively under the aegis of the emerging area of “Liberty, Security and Justice” of the European Union. Spanish diplomacy has emerged as one of the most active defenders of the criteria set down at the Tampere (Finland) European Council in October 1999, arguing, at the present time, for the effective implementation of the guidelines framed within the so-called “Programme of The Hague”.

The notion of “European Citizenship” and the creation of a genuine area of “Liberty, Security and Justice” cannot be devoid of a social and welfare dimension that has to lie at the very core of the process of European construction. In this context, Spain has unequivocally staked its position whereby, beyond the emergence of an “Economic and Monetary Europe”, whose current over-arching symbol is the Euro, it has advocated the emergence of a Europe based on sustainable growth and one that is in full harmony with both its social and environmental aspects. The so-called “Lisbon Strategy”, launched by the European Council of March 2000, stands as of the major contributions of Spanish diplomacy in the socio-economic area. Exactly five years on from its inception, Spain, in conjunction with its European partners, aims to breathe new life into this “Strategy” with the intention of transforming the Union, by 2010, into one of the most prosperous and competitive areas of the globe, with even higher levels of wellbeing and an unequivocal respect for the Environment.

Nevertheless, Spain has not merely been a successful promoter and leader of initiatives at the heart of the European Union, but it has managed to involve the Union beyond its external frontiers in areas that historically possessed an interest for our country. The institutionalisation of a European political, economic and socio-cultural dialogue with the Mediterranean-rim countries and with Latin America provides a clear example of this strategy. The so-called “Barcelona Process”, begun in November 1995 under the Spanish EU Presidency, stands as one of the milestones of our contribution to the external dynamics of the Union. It is not only in Spain’s interest, but of the “European Project” in its collective dimension, to ensure the greater development and political stability of regions as strategically significant as North Africa and the Middle East. This reality therefore underscores the momentous significance possessed by the re-launch of the “Barcelona Process” in the second semester of this year, on the occasion of the tenth anniversary of its inception.

Equally important, furthermore, is Spain’s special relations network with Latin America. Spain has not limited itself to acting as a “bridge” between “Europe” and “America”, but it has also actively contributed to the implementation of a European policy of cooperation and development and to the establishment of Free Trade Agreements with Mexico and Chile. The creation of a Free Trade Area linking the European Union and MERCOSUR, together with the launch of negotiations with the Andean and Central American Communities, with a similar objective, currently stand as some of the outstanding topics on the foreign policy agenda of the European Union.

4. Conclusions

The Spain that readied itself to knock at the European Communities door, in the now distant past of the mid-1970’s, is an altogether different world from the contemporary, democratic and modern country that Spain is nowadays. Spain has undergone a transformation from a three-fold perspective: political, economic and social. It has ceased to display a passive outlook in the European construction process and has assumed, through its initiatives, an active role in the evolution of the Union. One of the last milestones, in no uncertain terms, is having been the first Member State of the Union to express itself, through a nationwide referendum that supported the Treaty on the European Constitution, in favour of the “Europe of Tomorrow”.

Nevertheless, in what ways can lessons possibly be drawn from the political and economic rapprochement to “Europe” achieved by Spain in the light of the negotiating process that Turkey is likely to embark on from the forthcoming 3 October? There is no doubt that we find ourselves before two quite distinct countries. The European Communities of the 1970’s, moreover, cannot possibly be compared to the present-day European Union. And even the international society of the 1970’s and 1980’s was radically different from that with which we are confronted and have to contend with in our everyday lives.

Yet, it may be true to state that Turkey too is considered today as a “strange bird at the doors of the Community”. However, provided that Turkey engages itself to faithfully meet the “Copenhagen Criteria” and to subscribe fully to the “Acquis Communautaire”, the country has the capacity to contribute significantly to the future development of the European Union. The sizeable energy reserves that are enclosed within its area or the special network of relations it maintains with Asia represent only some of the positive assets it could bring forth to the “European Project”.

 


 

 

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