'STEP' Country Profile

Social – The People

Spain's population density, lower than that of most European countries, is roughly equivalent to that of New England in the USA. In recent years, following a longstanding pattern in the rest of Europe, rural populations are moving to cities. Urban areas are also experiencing a significant increase in immigrant populations, chiefly from North Africa, South America, and Eastern Europe.

Spain has no official religion. The constitution of 1978 disestablished the Roman Catholic Church as the official state religion, while recognizing the role it plays in Spanish society. More than 90% of the population is at least nominally Catholic. Among the remaining population, there are about 1.2 million evangelical Christians and other Protestants (2006 est.), 1 million Muslims (2006 est.) and 48,000 Jews (2006 est.).

Technological

Spain is well ahead with its technology programme as illustrated below. Spain is now the world’s eighth-largest economy and the fastest growing in the European Union. It represents more than 2.5% of the world’s total GDP and a third of all new jobs created in the Eurozone last year. Spain is fast becoming a leader in innovation and generating advanced solutions in the industries of aerospace, renewable energies, water treatment, rail, biotechnology, industrial machinery and civil engineering.

Wind Power

Spain's installed wind-power capacity makes it the second-largest wind-energy producer in the world, and Spanish companies lead the global wind-power market.

For governments and companies committed to the idea of powering our technological age with clean, renewable energy, wind power is a natural fit. Wind-powered technology has matured over the past two decades, driving down costs and driving up efficiency. Today, countries like Denmark and Germany have demonstrated that integrating a power source such as wind into the grid can easily provide more than 20 percent, sometimes significantly more, of the power needs of a given region - now, Spain has joined them as a wind-energy powerhouse. With 9,000 megawatts of installed capacity, Spain ranked second in the world in 2005 in total installed capacity, behind Germany (16,000 megawatts) and ahead of the United States (6,500 megawatts). Furthermore, Spanish companies, both turbine manufacturers and wind-farm operators, are among the leaders in the global wind-power market. Some examples are Gamesa Eólica (world's second largest turbine manufacturer), Iberdrola (world's largest wind-farm owner and operator) and Acciona Energía (world's largest wind-farm builder and developer).
What's more, from the dense industrial base already present in Spain, many companies have sprung up to develop technologies befitting the needs of the wind industry, in fields such as composites, steel, electrical components, and wind-data loggers. With 30 percent annual growth in the sector, and a clear commitment from the Spanish government to encourage private investment, technological advances, and grid development, Spain is poised to continue this trend toward powering its economic and technological growth with the strong winds that sweep over the country's mountains and plains.

Desalination

Spain built Europe's first desalination plant nearly 40 years ago and is the largest user of desalination technology in the Western world. Spanish companies lead the market, operating in regions including India, the Middle East, and North America. Spanish innovation contributes to advancing desalination to bring sustainable clean water to millions.

Just steps away from the Mediterranean sea along Spain’s southern coast, machinery hums inside Carboneras, Europe’s largest seawater desalination plant. Throughout the building, water flows through brightly colored pipes and tanks, along the way passing through layers of chemical and physical filtration before the seawater reaches the heart of the plant, the reverse-osmosis membranes that turn saltwater into fresh. This plant is the latest marker in Spain’s decades of experience and research in the field of desalination. It represents the efforts of some of the top Spanish firms in the field, both in Spain and around the world. For the past nearly 40 years, companies in Spain have built and operated desalination plants, first in the water-poor Canary Islands off the coast of Africa, then moving to fulfill water needs on the Spanish mainland and around the world. These companies, and the companies that provide a wide variety of parts for desalination plants, have grown, constantly honing and improving both cost and efficiency. Research continues in the Canary Islands for ways to couple desalination with renewable energy to provide sustainable, ecological solutions for communities in developing countries. Today, Spanish companies make up the largest percentage of competitors on the international market for the design, engineering, construction, and operation of new desalination plants around the world.

Leader in Infrastructure Development

In the world of concessions for infrastructure development, Spanish companies lead the international market. Six of the 10 top transportation concession companies are based in Spain, constructing and/or managing about 40 percent of all major transportation concessions in the world. Spanish companies are taking their knowledge and experience into an increasing number of markets each year.

Since the advent of the automobile, many governments in both developed and developing countries have assumed the responsibility for public spaces such as roads. Tolls have persisted, but most of these have remained in the hands of local or national authorities. Today, there is a move afoot for private companies to run, manage, even at times to own what are primarily public spaces. These are often done through Public Private Partnerships, and these models provide a method for governments to obtain much needed funds and for businesses to develop and invest in equally needed public infrastructure. At the same time, advances in technology have allowed for a growing public acceptance of an increase in toll roads. The advent of electronic tolls, and even barrier-free toll roads, has created an ease of use that is contributing to the growth in tolls as a form of revenue for both public and private developers. Due to the history of road development in Spain and the strength and experience of Spanish companies, these companies have assumed the lead in the global market for infrastructure concessions.

High-Speed Railways

Spain is rapidly expanding its high-speed rail service, becoming one of most connected countries in the world. As the high- speed rail network grows, Spanish companies continue to innovate and provide new services and products at lower prices to meet the world’s growing demand.

The sensation of riding on Spain's high-speed rail from Madrid to Seville is more than anything one of smoothness, without the bumps and jostles common on conventional rail. Spain has embarked on an ambitious project to develop high-speed rail connections in every major city, spanning out in a web all around the country and connecting the urban dots along the coast. By 2020, the country plans to have 10,000 kilometers of high-speed rail completed, placing 90 percent of the population within only a few dozen kilometers of a high-speed rail line and shooting Spain to the world’s top ranks in terms of total high-speed rail on the ground. In the process, Spanish industry has taken advantage of the country’s new focus on high-speed rail to develop new products to meet the demand of Spanish market, and to innovate and compete on the world market for parts and services.

Aerospace Industry

The aerospace industry has grown dramatically in Spain in recent years as local companies have contributed to projects both in Spain and abroad. Spanish industry provides cutting-edge technology which enables its companies to expand internationally.

As Spain has grown economically in recent decades, its aerospace industry has taken flight. Buoyed by an unusually strong investment in research, and by local representation from major international aerospace companies, smaller engineering, design, and technology companies have formed and grown to support the aviation and space sectors. Spanish firms have particularly advanced in the area of carbon fiber composites, a growing field in the push to decrease the weight and increase the efficiency of aircraft. At the same time, university research has increased in partnership with private companies to meet the needs of the aerospace industry in Spain and around the world.

Biotech Revolution

In the past five years, Spanish companies and institutions have sharply increased their focus on biotechnology, and the results — in new companies, new products, and new research centers—represent an important contribution to the growing international field.

Both the national and local governments have embraced the current European focus on developing a knowledge-based economy, one that creates companies—and income—from the ideas of its citizens. National and local governments have increased funding for research, created new research centers, and provided mechanisms to advance technology transfer. Though this focus is relatively new in Spain, the strong scientific environment has provided a rich medium for the rapid growth of biotechnology, which has seen intensive investment and development in the past five years. According to Genoma España, a government-funded organization that promotes genomic research and practical applications, half of all scientific research in Spain focuses on biomedicine.

Solar Energy in Spain

Spain forges ahead with plans to build concentrating solar power plants, establishing the country and Spanish companies as world leaders in the emerging field. At the same time, the number of installed photovoltaic systems is growing exponentially, and researchers continue to explore new ways to promote and improve solar power. Spanish companies are also investing in huge photovoltaic fields, as companies dramatically increase production of PV panels and investigate the next generation of PV. Spain is already fourth in the world in its use of solar power, and second in Europe behind Germany, with more than 120 MW in about 8300 installations of PV. Within only the past ten years, the number of companies working in solar energy has leapt from a couple dozen to a few hundred.

Economic

Spain's accession to the European Community--now European Union (EU)--in January 1986 required the country to open its economy to trade and investment, modernise its industrial base, improve infrastructure, and revise economic legislation to conform to EU guidelines. In doing so, Spain increased gross domestic product (GDP) growth, reduced the public debt to GDP ratio, reduced unemployment from 23% in 1986 to 8.47% in first quarter 2007, and reduced inflation to under 3%. The fundamental challenges remaining for Spain include decreasing unemployment further, reforming labor laws lowering inflation, and raising per capita GDP.

Following peak growth years in the late 1980s, the Spanish economy entered into recession in mid-1992. The economy recovered during the first Aznar administration (1996-2000), driven by a return of consumer confidence and increased private consumption, although growth has slowed in recent years. Unemployment remains a problem at 8.47% (2007, first quarter), but this still represents a significant improvement from previous levels. Devaluations of the peseta during the 1990s made Spanish exports more competitive, but the strength of the euro since its adoption has raised recent concerns that Spanish exports are being priced out of the range of foreign buyers.

Political

Spain has a constitutional monarchy – Juan Carlos was proclaimed King on November 22nd 1975.  Deputies (elected by the d'Hondt system of proportional representation) and a Senate are formed as thus: four senators are elected in each of 47 peninsular provinces, 16 are elected from the three island provinces, and Ceuta and Melilla elect two each; this accounts for 208 senators. The parliaments of the 17 autonomous regions also elect one senator as well as one additional senator for every 1 million inhabitants within their territory (about 20 senators). Judicial--Constitutional Tribunal has jurisdiction over constitutional issues. Supreme Tribunal heads system comprising territorial, provincial, regional, and municipal courts. Subdivisions: 47 peninsular and three island provinces; two enclaves on the Mediterranean coast of Morocco (Ceuta and Melilla) and three island groups along that coast--Alhucemas, Penon de Velez de la Gomera, and the Chafarinas Islands.  Political parties: Spanish Socialist Workers Party (PSOE), Popular Party (PP), and the United Left (IU) coalition. Key regional parties are the Convergence and Union (CIU) in Catalonia and the Basque Nationalist Party (PNV) in the Basque country.

Local Government

The 1978 constitution authorized the creation of regional autonomous governments. By 1985, 17 regions covering all of peninsular Spain, the Canaries, and the Balearic Islands had negotiated autonomy statutes with the central government. In 1979, the first autonomous elections were held in the Basque and Catalan regions, which have the strongest regional traditions by virtue of their history and separate languages. Since then, autonomous governments have been created in the remainder of the 17 regions. The central government continues to devolve powers to the regional governments, which will eventually have full responsibility for health care and education, as well as other social programs.