Spain and Its Relations with the United States: In Brief

Summary

The United States and Spain have extensive cultural ties and a mutually beneficial economic relationship, and the two countries cooperate closely on numerous diplomatic and security issues. Spain has been a member of the North Atlantic Treaty Organization (NATO) since 1982 and a member of the European Union (EU) since 1986.

Given its role as a close U.S. ally and partner, developments in Spain and its relations with the United States are of continuing interest to the U.S. Congress. This report provides an overview and assessment of some of the main dimensions of these topics.

Domestic Political and Economic Issues

The government of Spain is led by Prime Minister Mariano Rajoy of the center-right Popular Party (PP). The PP won an absolute majority in the general election of November 2011. From 2004 to 2011, the government of Spain was led by José Luis Rodríguez Zapatero of the center-left Socialist Workers’ Party (PSOE).

The next election is scheduled for December 20, 2015. Economic conditions, austerity policies, and corruption scandals have fueled public backlash against Spain’s political establishment in recent years. Two new parties, Ciudadanos and Podemos, are challenging the PP and PSOE for votes. Polls indicate that the election is likely to result in Spain’s first coalition government since the current constitution was adopted in 1978.

The global financial crisis of 2008-2009 ended a decade of strong economic growth and plunged Spain into a prolonged recession. The government budget deficit and debt increased, and unemployment rose dramatically. Intervention in 2012 by Spain’s Eurozone partners and the European Central Bank helped restore confidence in the country’s economy and stabilize the banking sector. Although economic conditions remain difficult and unemployment remains above 20%, there are signs of improvement, including forecasts for sustained economic growth over the next several years.

Regional Issues

The Spanish government is firmly opposed to a long-standing independence movement in Catalonia, a region of northeast Spain that includes Barcelona. In November 2015, Spain’s constitutional court blocked an attempt by the regional Catalan parliament to begin the process of forming an independent state. Catalonia held a non-binding referendum in November 2014 that returned a large majority for independence, but such a referendum would only be legally binding under the country’s constitution if convened by the central government.

Counterterrorism

The United States and Spain cooperate closely on counterterrorism issues. An estimated 50 to 100 Spanish citizens and approximately 1,200 Moroccan nationals with Spanish residency cards are thought to have joined jihadist groups fighting in Syria and Iraq. Spanish authorities have dismantled numerous recruiting networks over the past several years, many of them based in Ceuta and Melilla, Spanish enclaves on the coast of Morocco. In March 2015, the Spanish Parliament adopted new legislation to strengthen counterterrorism laws and police powers in response to the foreign fighter threat.

U.S.-Spain Defense Relations

Spain plays an important role in U.S. defense strategy for Europe and Africa. Four U.S. destroyers equipped with the Aegis Ballistic Missile Defense system are stationed at the Rota naval base as part of the European Phased Adaptive Approach for missile defense in Europe. Additionally, Morón air base is the headquarters for a rapid reaction force of 2,200 U.S. Marines that protects U.S. interests and personnel in North Africa.

Spanish armed forces participate in numerous international peacekeeping and security operations, including in Afghanistan, Lebanon, Mali, and Somalia. In the context of longstanding U.S. concerns about low European defense spending, Spain’s budget austerity has included considerable cuts to the defense budget in recent years.

U.S.-Spain Economic Relations

Investment flows between the United States and Spain totaled nearly $80 billion in 2013, and the trade relationship totaled nearly $25 billion in 2014. Approximately 1,200 U.S. firms operate subsidiaries and branches in Spain. Affiliates of Spanish companies account for approximately 73,000 jobs in the United States. Spanish officials have supported the proposed Transatlantic Trade and Investment Partnership under negotiation between the United States and the EU.