Government Type: parliamentary monarchy

Capital: Madrid Geographic Coordinates: 40 24 N, 3 41 W

Independence: 1492; the Iberian peninsula was characterized by a variety of independent kingdoms prior to the Muslim occupation that began in the early 8th century A.D. and lasted nearly seven centuries; the small Christian redoubts of the north began the reconquest almost immediately, culminating in the seizure of Granada in 1492; this event completed the unification of several kingdoms and is traditionally considered the forging of present-day Spain

National holiday: National Day, 12 October (1492); year when Columbus first set foot in the Americas

Constitution: approved by legislature 31 October 1978; passed by referendum 6 December 1978; signed by the king 27 December 1978

Legal system: civil law system with regional applications; accepts compulsory ICJ jurisdiction with reservations

Suffrage: 18 years of age; universal

Economy Overview: Spain's mixed capitalist economy is the 12th largest in the world, and its per capita income roughly matches that of Germany and France. However, after almost 15 years of above average GDP growth, the Spanish economy began to slow in late 2007 and entered into a recession in the second quarter of 2008. Spain's unemployment rate rose from a low of about 8% in 2007 to more than 19% in December 2009 and continues to rise. Its fiscal deficit worsened from 3.8% of GDP in 2008 to about 7.9% of GDP in 2009, more than double the EMU limit. GDP contracted by 3.6% from 2008, ending a 16-year growth trend. The economy is projected to resume modest growth sometime in 2010, making Spain the last major economy to emerge from the global recession. The reversal in Spain's economic growth reflects a significant decline in the construction sector, an oversupply of housing, falling consumer spending, and slumping exports. Government efforts to boost the economy through stimulus spending, extended unemployment benefits, and loan guarantees have not prevented a sharp rise in the unemployment rate, which was the highest in the EU in 2009. Spain's banking sector has been relatively insulated from the global financial crisis, due in part to conservative oversight by the Bank of Spain. Government intervention to rescue banks on the scale seen elsewhere in Europe in 2008 and 2009 was not necessary in Spain, although Spanish banks' high exposure to the collapsed domestic construction and real estate market poses continued risks for the sector. The government intervened in one regional savings bank in 2009, and others have merged out of necessity.

International Disputes: in 2002, Gibraltar residents voted overwhelmingly by referendum to reject any "shared sovereignty" arrangement; the government of Gibraltar insists on equal participation in talks between the UK and Spain; Spain disapproves of UK plans to grant Gibraltar greater autonomy; Morocco protests Spain's control over the coastal enclaves of Ceuta, Melilla, and the islands of Penon de Velez de la Gomera, Penon de Alhucemas, and Islas Chafarinas, and surrounding waters; both countries claim Isla Perejil (Leila Island); Morocco serves as the primary launching site of illegal migration into Spain from North Africa; Portugal does not recognize Spanish sovereignty over the territory of Olivenza based on a difference of interpretation of the 1815 Congress of Vienna and the 1801 Treaty of Badajoz