Abdication is the king’s final gift to a grateful Spain
Few anticipated that, within a matter of years, the position of Juan Carlos himself would be called into question.
Few anticipated that, within a matter of years, the position of Juan Carlos himself would be called into question.
The growth in foreign direct investment in Spain in 2013 underscores the increased international confidence in an economy that is beginning to recover from a five-year recession, albeit weakly.
This report aims to provide a structured overview of the issues that need to be addressed in order to overhaul Spain’s foreign policy strategy. It is directed at all those who play leading roles in the defence and projection abroad of Spain’s values and interests. Its novelty lies in Spain’s lack of a tradition in drawing up papers such as this, since the usual practice has been to focus on the short term and to disregard the need for both public doctrine and planning.
The Spanish banking system, hard hit by its massive exposure to toxic real estate assets following the collapse of the country’s property market in 2008, is on the mend.
Spain’s striking export success has enabled the economy to emerge from recession and helped to turn around the current-account balance. Structural adjustment is shifting the engine of the economy from domestic sources of growth into an export-led model.
Spain is coming out of recession, but the crisis is far from over. The government cannot afford to rest on its laurels and relax the pace of reforms. To do so, would store up problems for the future.
What options and strategies are open to Spain in its historical dispute with the UK over Gibraltar? A crisis again broke out with Gibraltar and the UK in July and August of 2013 over the sinking of an artificial reef in waters traditionally exploited by Spanish fishermen.
The relations between the UK and Spain are extremely close-knit and should not be allowed to be jeopardised by the Gibraltarian government’s recent actions.
In view of the current tension between the UK and Spain as a result of the dispute over Gibraltar, the Elcano Royal Institute has carried out a survey amongst a representative sample of the populations of the two countries. The aim is to gain a better understanding of their reaction to the conflict that has broken out in the summer of 2013 and their opinions on underlying issues such as sovereignty over the Rock and the importance of bilateral relations.