Credit Management March 2024

COUNTRY FOCUS
Spain has a significant economy that has proven to be particularly resilient.
Y Viva España
ANYONE of a certain age might
remember a song from the early
1970s, Y Viva Espana. Written by a
Belgian and recorded in Dutch, the
song told of the anticipation of a
long-wanted holiday in Spain. It was
re-recorded some 21 times and in
other languages. There was even an adaptation for Fulham
Football Club ("Viva el Fulham").
Spain is well known as a holiday destination – especially
among Brits seeking sun, sea and sangria. However, there’s
more to the country such as bullfighting, Granada’s Alhambra
and La Sagrada Familia in Barcelona, an almost religious
fervour over football, tapas, and flamenco.
Beyond these, not everyone remembers that General Franco’s
Spain was a testing ground for the Third Reich’s military
before the outbreak of World War Two, and that Spain gave
us Julio Iglesias as well as the basis for Fawlty Towers’ waiter,
Manuel.
Background
As the Spanish Government’s own website outlines, based
on findings at Atapuerca in northern Spain, early man on
the Iberian Peninsula can be traced back 800,000 years.
From 1100 to 300BC, it came under the influence of the
Phoenicians and Greeks and then Romans and Cathaginians.
Following the collapse of the Roman empire, Visigoths ruled
from the 5th to 8th centuries.
However, Arab invaders came in 711 and ruled for the best
part of eight centuries bequeathing the country sites such
as the Great Mosque of Córdoba, regarded as the most
important monument of the Western Islamic world, and the
archaeological site of Medina Azahara.
Next, in 1492, the Christian Kingdoms of Castile
and Aragon conquered the Emirate of Granada, ending
nearly 800 years of Muslim rule in the south and founding
modern Spain as a single state. The 16th and 17th centuries
witnessed a Spanish empire at its zenith; the 18th century
saw the War of Spanish Succession that led to the loss of
European possessions outside of Iberia; 1807-14 Napoleon
occupying Spain; and during the 19th century Latin
American colonies won their independence and Cuba,
Puerto Rico and the Philippines were lost after war with
the United States in 1898. 1931 saw an electoral
backlash against the monarchy and a republic declared.
Radical policies of land reform, labour rights, educational
expansion and anti-Church legislation deepened a political
divide. By 1936, a coalition of left-wing and liberal parties
narrowly won parliamentary elections and sought to
reintroduce the radical policies of 1931. A coup by rightwing
military leaders followed, capturing only part
of the country leading to three years of civil war
with General Franco declaring victory and a dictatorship
in 1939.
Franco’s regime ended with his death in 1975; the monarchy
was restored, and free elections were held in 1977. A rightwing
coup in 1981 failed after King Juan Carlos addressed the
nation. The country joined NATO in 1982, the EEC in 1986,
and adopted the euro in 2002.
Spain is now a member of the EU, WTO, OECD, OSCE and
Council of Europe and permanent guest at the G20. It has
a three-tier political system that makes it one of the most
de-centralised states in Europe. While the centre sets the
broad parameters, the country’s 19 devolved administrations
are responsible for the provision of basic public services
including health, education and social services, and have
significant influence over the regulatory environment
for business.
Geography and demographics
Spain’s land mass – including that of its island territories
– measures some 505,370 sq. km. Excluding the islands, the
mainland occupies 493,514 sq. km (Spanish government
data). In comparison, mainland France has 543,940 sq. km
and the UK just 242,495 sq. km.
It’s squarish in shape – 1,085 km wide and 950 km tall, and
varied in geology and geography and by a relatively high
average altitude – over 600m above sea level. As such, it
is the second-highest country in Europe, surpassed only
by Switzerland where the average altitude is 1,300 metres.
With its position adjacent to two large bodies of water
it's not unsurprising that Spain’s Instituto Geográfico
Nacional has defined eight climates – Atlantic, Continental,
Mediterranean, Mediterranean Mountain, Cold Steppe, Hot
Steppe and Subtropical.
In terms of the population, the World Bank, cites various
sources. In 1960 it stood at 30.45m. 30 years later in 1990 it
was 38.86m. And by 2020 Spain’s population was 47.36m.
2022 data from Instituto Nacional de Estadística reckons that
by 2072, Spain will have 52.9m people.
Brave | Curious | Resilient / www.cicm.com / March 2024 / PAGE 24