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Spain
By: Seth Bell
History
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Powerhouse in the 16th and 17th century which
was eventually overtaken by England.
Great plague struck Spain in the end of the 16th
century and wiped out 10% of the population.
Recovering from the Spanish-American War,
Spain began further development in the 20th
century.
Neutral in both World Wars.
Suffered devastating civil war from 1936-1939
Joined the EU in 1986.
Switched its currency from the peseta to the euro
on January 1, 2002.
Geography
Southwest Europe
 Bordering Waters:
Mediterranean Sea,
Atlantic Ocean
 South of France
 North of Morocco
 Slightly larger than the
U.S. state of
California.
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Economics
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GDP: $1.362 trillion; ten times smaller than
the United States ($13.86 trillion).
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GDP per capita: $33,700; higher than Italy
and on pace with France.
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United States: $46,000
Real growth rate: 3.8%; greater than all G7
countries and all big EU economies for the
third consecutive year.
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United States: 2.2%
Economics Cont.
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Labor Force: 22.01 million
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United States: 153.1 million
Unemployment: 7.6%;
 Favorable compared to other
European countries and vast
improvement from 20% in early
1990’s.
 United States: 4.6%
Economic Problems
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High inflation: 2.7%
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Large underground economy
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Poor education system
 Ranked
among worst 3 with United States
and United Kingdom for worst education in
developed country.
General Info on Welfare System
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Existing system was created in the mid
1970’s following the fall of the dictator
General Franco.
 Socialist regime (PSOE) took over and
created much of the welfare system that still
exists today.
 Welfare system consists mainly of cash
benefit.
 Main benefits are: health care (sickness and
maternity), injuries at work, unemployment,
pensions, invalidity and death benefits.
Income Taxes
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Residents of Spain pay taxes to the government on
their income earned worldwide.
Non-residents of Spain pay taxes only on their
income earned within Spain.
Spain has a double taxation
agreement with many
countries.
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This allows a tax credit in your
home country for taxes paid in
Spain, and vice versa.
Unemployment Benefit Program
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Very generous unemployment protection
system.
Unemployed residents are entitled to
approximately 65% of the national average
earnings.
Those who have worked during six years
before becoming unemployment can receive
benefits for a maximum period of two years.
Must file for unemployment within 15 days of
becoming unemployed.
Benefit cannot be received if it is your
decision to end work.
Health Care
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Health Care has been provided through four
systems:
1.
Social Insurance
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2.
3.
4.
Provides for for hospital care, good medical services
and subsidized prescriptions
Most hospital care was provided by private hospitals
run by the Catholic church.
Private Insurance
Occupational Insurance
Charitable Insurance
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Questionable quality, administered locally
Health Care Cont.
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Health Care was and still is a big issue in Spain.
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The quality of service used to vary by certain regions.
In 1986, the government established a universal
National Health Service to guarantee all
Spaniards and foreigners in Spain a right to
health care.
Spanish Politics
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System similar to a two-party system.
The two dominant parties are:
Partido Socialista Obrero Español - which
includes other socialist parties from
regions all over Spain (i.e. Partit dels
Socialistes de Catalunya - Socialist Party
of Catalonia).
2. Partido Popular - translates to People’s
party. Liberal views.
1.
Political Issues of Welfare
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Poverty is still substantially higher than other
parts of Europe.
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Some old functions from the Franco regime
still remain intact which are holding back
further development.
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Franco was strongly in favor of family values
and as a result, maternity and single parent
benefits are, even today, among the lowest in
the European Union.
Future Concerns of Welfare
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Problems associated with
unemployment.
 The increasing flexibility
of labor market.
 An aging population.
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Currently, there is little
reform for the elderly.
90% of elders of retirement
age live with family.
Only 5% live in retirement
homes.
Large portion of elders live
alone on low income.
My Thoughts
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The remnants of the Franco regime that still
remain intact are heavily slowing down the
development of Spain’s welfare system.
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Large issues of changing demographics must
be dealt with.
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The problems of unemployment, the labor
market, and the aging population have largely
prevented greater social equality despite
increased public expenditure.
Sources
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CIA - The World Factbook - Spain
 https://www.cia.gov/library/publications/the-worldfactbook/geos/sp.html
CIA - The World Factbook - USA
 https://www.cia.gov/library/publications/the-worldfactbook/geos/us.html
Spain: Growth to Diversity. By Elisabeth Almeda and
Sebastia Sarasa (1996). European Welfare Policy;
Squaring the Welfare Circle St.Martin's: New Yor