Spain and the European Union

Spain's aspirations to join the European Communities gained momentum with the advent of democracy and, to this end, it officially applied for membership of the European Economic Community on 26 July 1977. This Spanish aspiration was fulfilled eight years later, on 12 June 1985, with the signing of the Treaty of Accession in Madrid and effective integration into the Economic Community on 1 January 1986. Since then, Spain's path has been marked by important advances that have resulted in the well-being of Spanish society as a whole.

Three and a half years after its accession, in June 1989, Spain incorporated its national currency into the Exchange Rate Mechanism of the European Monetary System, which had already been established by France, Italy, Denmark, the Netherlands and Luxembourg since 1979. Thus, in 1995, the denomination of "euro" for the common European currency was agreed in Madrid, which was successfully implemented in civil  society from January 2002.

Spain also reinforced its commitment to integration by signing the Schengen Agreement in June 1991, which led to the progressive elimination of border controls between Member States, within the framework of the concept of a "Europe without Borders".

The signing of the Maastricht Treaty (1992) gave the European Union its current name, as well as the design of the roadmap towards a common currency. That same year, during the Edinburgh Summit, the Member States set up the so-called Cohesion Fund for environmental, transport and energy infrastructure projects in countries with an income level below 90% of the EU average. As a result, Spain, along with the rest of the structural funds received, obtained invaluable support for revitalisation and regional development.

Spain has played an active role in the construction of the European project, being involved in the negotiation of the treaties of Amsterdam (1997), Nice (2001), the failed Constitutional Treaty (2004) and Lisbon (2009). Likewise, it has been contributing to the development of policies with sustained contributions in various areas such as citizenship, cohesion policy, cultural and linguistic diversity, judicial cooperation or the fight against terrorism, as well as putting its stamp on foreign relations, especially with regard to the policy oriented towards Latin America and the southern shore of the Mediterranean.

The European Union is the natural framework for our country's political and economic development. For this reason, Spain is assuming its responsibilities by promoting a Union that is more effective, more democratic, closer to its citizens, capable of responding to the challenges and needs of the new century.

The European Union proposes the strengthening of the Economic and Monetary Union (EMU) in the coming years through greater financial, budgetary and economic integration and greater democratic legitimacy. The ultimate goal is to be able to guarantee the economic well-being of citizens and businesses within the European Union.

EMU implies a common monetary policy, rules of fiscal discipline as well as instruments for economic policy coordination between the Member States of the euro area. Moreover, since October 2012, the European Stability Mechanism (ESM) has been operational, with the aim of providing financial support, under strict conditionality, to euro area Member States experiencing or at risk of experiencing serious financing or financial stability problems.

In recent years, to complete the structure of the EMU, a Banking Union (UB) has been created in the financial field with the aim of guaranteeing that the banking sector of the euro zone and the European Union as a whole is safe and reliable. This new system is based on three pillars - the Single Supervisory Mechanism, the Single Resolution Mechanism and the European Deposit Guarantee Scheme (under development). In addition, a Capital Markets Union (CMU) has been under construction since 2015 to enable companies in the European Union to obtain more diversified and competitive financing, and to encourage savings and investment. Therefore, the consolidation of the BU and CMU would strengthen the resilience of the EMU. In the area of the single currency, the European Commission - in close collaboration with the European Central Bank - presented the proposal for the creation of the digital euro in June 2023: a digital currency that will complement current banknotes and coins, offer additional payment options to European citizens, and strengthen the international role of the euro.

Cohesion policy accounts for almost a third of the total budget of the European Union, 392,000 million euros at 2021 prices, and it aims for 2021-2027 to promote economic, social and territorial convergence, through sustainable competitiveness, research and innovation, the digital transition, the objectives of the European Green Deal and the promotion of the European Pillar of Social Rights. 

There are currently four Cohesion Policy funds: 1) European Regional Development Fund (ERDF) whose objective is to strengthen economic, territorial and social cohesion in the European Union by correcting development imbalances between its regions. 2) European Social Fund Plus (ESF+), the EU's main fund for investing in people and key to implementing the European Pillar of Social Rights. 3) Cohesion Fund, which aims to reduce economic and social disparities through investment in the environment and the Trans-European Transport Networks. 4) Just Transition Fund, with the aim of alleviating, in the most affected regions, the socioeconomic costs derived from the transition towards a climate-neutral economy. 

The amount of cohesion policy for Spain in the period 2021-2027 amounts to €35,562 million, which places our country as the third largest beneficiary, close behind Poland and Italy, compared to the €32,400 million allocated in the Multiannual Financial Framework 2014-2020, with an increase of almost 10%.​