Since the advent of democracy in 1976, Spanish politics has been dominated by the two largest parties: the Partido Socialista Obrero Español (PSOE) socialist party and right-wing Partido Popular (PP) party. In the 2011 national, regional, and local elections, the PSOE—in power since 2004—was handed widespread defeats, giving the opposition right PP outright majorities in 8 of the 13 regions that were up for grabs, and, nationally, installing PP party leader Mariano Rajoy as prime minister.
The electorate soured on the austerity measures the PSOE had adopted to cope with the country's considerable economic problems—not the least of them the highest unemployment rate in the euro zone—but the PP government has taken many measures even further: It raised income taxes, introduced labor reforms that make it easier for employers to fire workers, weakened the system of collective bargaining (thus lowering wages), and reduced both the numbers and salaries of public-sector, public-health, and education employees. The months following the election turned the spotlight on the indignados—the “indignant ones”—who gathered in Occupy Wall Street–style protests against the cutbacks in major cities nationwide; demonstrations have continued sporadically since then.
An important element of PP policy is its opposition to any further devolution of powers to Spain’s autonomous regions, which are responsible for their own education, welfare, and health care budgets—and where chronic borrowing and overspending have contributed significantly to the nation’s economic crises. Rajoy’s determined centralism has only added fuel to separatist sentiments, especially in Catalonia, where parties advocating outright independence won the regional elections in late 2012. In 2013, the regional parliament set the date for an independence referendum in 2015, although this is unlikely to go ahead because it’s unconstitutional.
THE ECONOMY
The introduction of the euro in January 2002 brought about a major change in Spain's economy, as shopkeepers, hoteliers, restaurateurs, and real estate agents all rounded prices up in an attempt to make the most of the changeover from the old currency, and the country became markedly more expensive. This did little to harm Spain's immense tourism machine, at least until the recession began to take its toll in 2009. A weaker euro and an improvement in global economic conditions brought the hospitality industry bouncing back in 2012 and 2013; this reflected, in some measure, a return on the government's €1.5 billion loan to "de-seasonalize" the industry (reducing its dependence on the summer beach-bound holiday market) and expand both the eco-friendly and the upscale cultural components of the Spanish travel experience. With the economy staging a slow recovery (the economy shrank by some 1.2% in 2013), tourism remains a bright spot: Spain's 60-million-plus visitors contribute around 12% annually to the country's GDP.
RELIGION
The state-funded Catholic Church, closely tied to the right-wing PP and with the national Cadena Cope radio station as its voice, continues to hold considerable social and political influence in Spain, with members of secretive groups such as Opus Dei and the Legionarios de Cristo holding key government and industry positions.
Despite the church's influence, at street level Spain has become a secular country, as demonstrated by the fact that 70% of Spaniards supported the decidedly un-Catholic 2005 law allowing gay marriage. And although more than 75% of the population claims to be Catholic—attendance at Mass has been bolstered over the last decade by strongly Catholic South American and Eastern European immigrants—less than 20% go to church on a regular basis.
More than 1 million Muslims reside in Spain, making Islam the country's second-largest religion.
THE ARTS
Spain's devotion to the arts is clearly shown by the attention, both national and international, paid to its annual Principe de Asturias prize, where Prince Felipe hands out accolades to international high achievers such as Philip Roth and Annie Leibovitz, and to homegrown talent such as the golfer José María Olazábal and writer Antonio Muñoz Molina, who has taught at the City University of New York.
Film is at the forefront of the Spanish arts scene. Acclaimed director Pedro Almodóvar notched another triumph in 2013 with his comic take on air travel in I’m So Excited!, starring Spanish leads Antonio Banderas and Penelope Cruz (who also teamed up with her husband, Javier Bardem, under the direction of Ridley Scott for The Counselor).
In contrast, Spanish music continues to be a rather local affair, though the summer festival scene, including the Festival Internacional de Benicàssim and WOMAD (World of Music and Dance), serves up top names to revelers who come from all over Europe to soak up music in the sun.
While authors such as Miguel Delibes, Rosa Montero, and Maruja Torres flourish in Spain, few break onto the international scene, with the exception of Arturo Pérez Reverte, whose books include Captain Alatriste and The Fencing Master, and Carlos Ruiz Zafón, author of the acclaimed Shadow of the Wind, The Angel’s Game, and Prisoner of Heaven. Spain's contribution to the fine arts is still dominated by three names: the Mallorca-born artist Miquel Barceló; the Basque sculptor Eduardo Chillida, who died in 2002; and the Catalan abstract painter Antoni Tàpies, who died in 2012.
SPORTS
With Real Madrid and FC Barcelona firmly established as international brands, and La Liga recognized as one of the world's most exciting leagues, soccer remains the nation's favorite sport. The national soccer team, known as La Roja ("The Red One"), is the only team in the world to have won the European Cup twice and the World Cup in succession. La Roja was a serious contender for its second successive World Cup in summer 2014, but was eliminated early in the group stages. After fútbol, what rivets the Spanish fan's attention are cycling, tennis, basketball, and motorcycle racing. Alberto Contador, who won the 2012 Vuelta de España; Rafael Nadal, the first tennis player to hold Grand Slam titles on clay, grass, and hard court; brothers Pau and Marc Gasol, who play for the Los Angeles Lakers and the Memphis Grizzlies respectively; and Marc Márquez who in 2013 was the youngest winner ever of MotoGP, are national heroes.
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