Full Country Name: The Kingdom of Spain  Country Profile: Spain  Area: 510,000 sq km
Population: 44 million
Capital City: Madrid
Languages: Castilian Spanish (official) - 74%, Catalan - 17%, Galician - 7%, Basque - 2%
Religions: Roman Catholic - 97%; Protestant/other - 3%
Currency: euro
Government: After the death of General Franco in November 1975, Spain made a rapid transformation from dictatorship to democracy. The monarchy, which had been removed in 1931, was restored, and the first multi-party elections since 1936 were held in 1977. The National Parliament (Cortes Generales), formed by the Congress of Deputies and the Senate, is elected every 4 years. Spain is also divided in to 17 regions. These autonomous communities have varying powers, but each has its own parliament, government and administrative apparatus.
Major political parties: Spanish Socialist Workers’ Party (PSOE) leader: Jose Luis Rodriguez Zapatero; Popular Party (PP) leader: Mariano Rajoy; United Left (IU) leader: Gaspar Llamazares; Convergence and Union (CiU) leader: Artur Mas.
Head of State: King Juan Carlos I
Prime Minister: Jose Luis Rodriguez Zapatero
Minister of Foreign Affairs: Miguel Angel Moratinos
Composition of Parliament: Total seats: 350. PSOE, centre left (164); Partido Popular (PP) centre right (148); others (38).
Membership of international groupings/organisations: European Union (EU), North Atlantic Treaty Organization (NATO), United Nations (UN) and non-permanent member of United Nations Security Council, Organisation for Security and Co-operation in Europe (OSCE).

GEOGRAPHY

Spain is the second largest country in the EU (after France), with a total surface area of 197,000 square miles (510,000 square kilometres). In addition to mainland Spain, territory includes two island archipelagos – the Balearics and the Canaries – and two enclaves on the North African coast, bordering Morocco – Ceuta and Melilla.

HISTORY
The history of Spain spans the period from pre-historic times, through the rise and fall of a global empire, to Spain's modern-day renaissance in the post-Franco era.
Modern humans arrived on the Iberian Peninsula in the area of today's Spain some 35,000 years ago. Waves of invaders and colonizers followed over the millennia, including the Celts, Phoenicians, Carthaginians, and Greeks, and by about 200 B.C., the area was controlled by the Roman Empire. After the fading of the Roman Empire, the history of the modern nation of Spain has been viewed as beginning with the Christian Visigothic kingdom established during the 5th through early 8th centuries.[1] By 711, the first Muslim invaders arrived from North Africa, and within a few years, these invaders dominated a large portion of the Iberian Peninsula. During the next 750 years, independent Muslim states were established, and the entire area of Muslim control became known as Al-Andalus. This period is remembered in part for a flowering of philosophy and religious thought, and in part for continuing tensions between Christians and Muslims. What became known as the Reconquest (or Reconquista) of Spain by Christian forces began almost immediately in the 8th century with resistance efforts in northern Spain, and gradually rolled south over the centuries, culminating in the defeat of the last Muslim ruler of Granada in 1492. During this period of the re-taking of Spain, Christian kingdoms and principalities developed, including most importantly, the Kingdom of Castile and the Kingdom of Aragon. The union of these two kingdoms, through the marriage in 1469 of Queen Isabella I and King Ferdinand II, led to the creation of the Kingdom of Spain.
Columbus setting foot on the New World
The year 1492 was also epochal as the year that Ferdinand and Isabella sent the Italian explorer, Christopher Columbus across the Atlantic Ocean in search of a new trade route to Asia. Columbus's arrival in the New World, and the development of the Spanish Empire ushered in an age of glory for Spain. The next several centuries saw Spain as a colonial power become the most important European nation on the global stage, and a central actor in European affairs and conflicts. Spanish literature and fine arts flourished during this time; the period was, however, marred by the expulsion of the Jews and Muslims and the Inquisition. During these next three hundred years, Spain's colonial empire covered almost all of South America, large portions of North America, the Philippines in Asia, and portions of coastal Africa—it was one of the largest empires in the history of the world. Financed in major part by the riches pouring in from its colonies, Spain became embroiled in wars and intrigues in continental Europe, including, for example, obtaining and losing possessions in today's Netherlands and Italy, and engaging in wars with England (including the sea battle involving the famous Spanish Armada) and France. The dynastic family of the Hapsburgs took control of the Spanish throne, followed by the crown being worn by the Bourbon family. Spain's European adventures led, however, to successive bankruptcies, and reduced Spain to a second-tier European power by the end of the 18th century.
The Third of May 1808 by Francisco Goya, showing Spanish resisters being executed by Napoleon's troops.
The Third of May 1808 by Francisco Goya, showing Spanish resisters being executed by Napoleon's troops.
The 19th century saw monumental change across Europe, and Spain was no exception. The early part of the century saw the independence of almost all the Spanish colonies in the New World. The century was also marked by foreign intervention and internal conflicts. Napoleon placed his brother on the Spanish throne, but with the expulsion of the French, Spain entered into an extended period of unrest. Similar to events in other parts of Europe, much of the 19th century was series of struggles among elites, as well as struggles between elites and newly empowered republican and liberal forces. Experiments in democracy alternated with returns to more authoritarian rule, and pressure grew in Spain's regions for increased autonomy. The arrival of the Industrial Revolution, late in the century, brought wealth to an expanding middle class in some major centres; however, the Spanish-American War at the end of the 19th century led to the loss of almost all of Spain's remaining colonies.

Despite a rising standard of living and increasing integration with the rest of Europe, the first third of the 20th century continued the political turmoil. Spain remained neutral during the First World War; however, by 1936 Spain was plunged into a bloody civil war, which by some accounts cost 1,000,000 lives. The war led to a fascist dictatorship, led by Francisco Franco, which controlled the Spanish government until 1975. Spain was officially neutral during the Second World War; the post-war decades were relatively stable (with the notable exception of an armed independence movement in the Basque Country), but were culturally and politically repressed. The death of Franco in 1975 began a remarkable transformation. While tensions remain (for example, with Muslim immigrants and in the Basque region), modern Spain has seen the development of a robust, modern democracy (a constitutional monarchy with popular King Juan Carlos), one of the fastest-growing standards of living in Europe, the flowering of an artistic community (particularly filmmakers), entry into the European Community, and the 1992 Summer Olympics. In 2005, Spain became the first nation in the world to grant full marriage and adoption rights to same-sex couples.

POLITICS  King Juan Carlos I became Spain's Head of State upon Franco's death in 1975 and nominated Adolfo Suarez as his first Prime Minister. Suarez's party, the Democratic Centre Union, won Spain's first post-Franco elections in 1977 and again in 1979 under the new Constitution, which had been approved the year before.

Between 1982 and 1996, Spain was governed by the Spanish Socialist Workers Party (PSOE), led by Felipe Gonzalez. The PSOE presided over a twelve-year period of economic and political development in Spain. But economic problems and allegations of political corruption discredited the Gonzalez Government towards the end of this period. The 1996 elections were won by the right-of-centre Popular Party (PP) led by José Maria Aznar, although the PP fell short of an overall majority.

On 12 March 2000, the PP was returned to office, this time with a clear overall majority (183 seats out of 350). The scale of the victory meant that there was no longer any need for a pact with smaller, nationalist parties. The PP’s success was attributed to the successful management of the economy and to PSOE’s internal turmoil. In response, in 2000 the PSOE elected a new, young leader, Jose Luis Rodriguez Zapatero, as a demonstration of the party's commitment to modernise and to bring through a new generation of young leaders.

The PP was comfortably ahead in the polls in advance of the 14 March 2004 General Election. However, devastating terrorist attacks by Islamic extremists in Madrid three days before the elections threw the elections into turmoil. Unexpectedly, the PSOE won 164 seats to the PP's 148, forming a minority government. New Prime Minister Jose Luis Rodriguez Zapatero was sworn in on 18 April 2004. José Maria Aznar stepped down as leader of the PP in September 2003 and said he would not stand for re-election. Mariano Rajoy is now the leader of the PP in opposition.

 Following his election victory, Zapatero lived up to his promise to withdraw Spanish troops from Iraq. He also embarked on significant labour and economic reforms, which have led to a drop in unemployment. Social reforms have been no less radical, including the legalisation of gay marriage in 2005. Modernisation of the autonomous communities' relationship with central Government has led to occasionally painful negotiations with the Basque Country, Catalunya and Valencia - with others to follow.

 On 22 March 2006, the Basque terrorist organisation ETA announced a 'permanent ceasefire', effective two days later. Zapatero's Government is now considering how to take a possible peace process forward.

ECONOMY  Basic economic facts (all figures 2005 unless stated)
GDP: US$1,126 billion (€904 billion)
GDP per head: US$27,225 (€21,854)
Annual growth: 3.4%
Inflation: 3.4%
Major industries: agriculture, fishing, construction, wine, cement, chemicals, engineering, petroleum refining, forestry and timber, iron and steel automobiles, textiles, telecommunications
Major trading partners: EU, Japan, Latin America.
Introduction
The UK is Spain’s fourth largest supplier, after Germany, France and Italy. In 2005 exports (goods & services) were valued at £14.1bn, making Spain the UK’s seventh largest export market worldwide. 
The UK is also the fourth largest foreign investor in Spain. In 2004, the net value of UK investment in Spain stood at €1,126m. There are around 700 UK companies already in Spain.
What are the opportunities?

Spain is a highly developed, competitive market. Almost anything sold in the UK is likely to sell well in Spain.
The Spanish government is committed to opening up the Spanish market and has embarked on an extensive privatisation programme. Spain therefore offers many opportunities to the British exporter across a range of sectors.
Sectors presenting particular opportunities are:
• Telecoms equipment
• Road vehicles
• Office machinery
• Medicinal and pharmaceutical
• Electrical machinery
• Miscellaneous manufactured articles
• Petroleum and petroleum products
• Iron and steel
• General industrial machinery
• Metalliferous ores and metal scrap
It is also worth noting that some 17 million British tourists visit Spain each year and over 750,000 Britons now live in Spain permanently (mainly around the coasts).

 Trade and Investment with the UK
UK exports to Spain in 2005 were worth over £10.3 billion. The UK is also the fourth largest foreign investor in Spain. UK imports from Spain were worth over £10.9 billion.

INTERNATIONAL RELATIONS

Spain's relations with the UK
Relations with the UK are strong and deep. The two countries work closely together on many key parts of the European agenda. Both have driven the 'Lisbon' economic reform agenda since it began.

There are regular bilateral employment seminars involving ministers, senior officials, union leaders, academics and others from the non-governmental sector. There is close co-operation on Justice and Home Affairs: we work closely together on improving Europe's response to the challenge of immigration; and have agreed on fast-track extradition procedures between our two countries. There is also extensive and valuable co-operation on health (including the recruitment of hundreds of highly qualified Spanish medical staff now working in the UK), defence, counter-terrorism and education.

These areas of co-operation are reflected in regular bilateral conferences and seminars including the annual Tertulias Conference, which brings together influential decision-makers and opinion-formers from the fields of politics, academia and business.

Diplomatic Representation

 Parliamentary Links
The British-Spanish All Party Parliamentary Group meets regularly with their Spanish opposite numbers. Meetings alternate between the UK and Spain. The Chair of the British Group is Lord Brennan.

Cultural Links
The British Council office in Spain is the organisation's largest in the world, excluding the aid-driven India programme.

Tourism
Around 17 million Britons visit Spain every year. Over 600,000 Britons now live permanently in Spain.

TRAVEL

 DID YOU KNOW?
• The modern day guitar was invented in Spain, when a sixth string was added to the Arab lute.

What is the EU?
The EU is a unique partnership of 27 democratic countries, working together for the benefit of all their citizens.
Belgium, France, (West) Germany, Italy, Luxembourg and the Netherlands started it all in 1958.
The UK, Ireland and Denmark joined in 1973.
And since then, all these countries have become members:
Greece, Portugal, Spain, Austria, Finland, Sweden, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Bulgaria, Romania
How does the EU work?
The EU is based on treaties between its member countries. These set out the EU's powers and how it can use them.
The EU's work is carried out by its institutions:
The European Council
Made up of leaders from each member country, it sets the EU's agenda and priorities.
The Council of Ministers Made up of ministers from each member country, this is the key decision-making body approving European laws.
The European Commission.
Similar to our civil service. It proposes new initiatives and implements the agenda set by the European Council.
The European Parliament
Elected by the people of EU countries, it approves laws jointly with the Council of Ministers. European Court of Justice
Ensures laws passed at a European level are applied consistently and interpreted correctly. What has the EU ever done for us? Nobody claims the EU is perfect, but it bring real benefits to our everyday lives: Being part of the richest consumer market in the world is good for the UK economy and jobs.
Travel in the EU has never been easier - from cheaper flights to health insurance and even pet passports. Our environment is cleaner too, including better beaches and air quality. Moreover, over 450 million people have a powerful voice on the world stage.