Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World Wars I and II but suffered through a devastating civil war (1936-39). A peaceful transition to democracy following the death of dictator Francisco FRANCO in 1975, and rapid economic modernization (Spain joined the EU in 1986) gave Spain a dynamic and rapidly growing economy and made it a global champion of freedom and human rights. The government continues to battle the Basque Fatherland and Liberty (ETA) terrorist organization, but its major focus for the immediate future will be on measures to reverse the severe economic recession that started in mid-2008.
Brief discussion of the country's relevant history
After a long and hard conquest, the Iberian Peninsula became a region of the Roman Empire known as Hispania. During the early Middle Ages it came under Germanic rule but later was conquered by Muslim invaders. Through a very long and fitful process, the Christian kingdoms in the north gradually rolled back Muslim rule, finally extinguishing its last remnant in Granada in 1492, the same year Columbus reached the Americas. A global empire began which saw Spain become the strongest kingdom in Europe and the leading world power in the 16th century and first half of the 17th century.
Continued wars and other problems eventually led to a diminished status. The French invasion of Spain in the early 19th century led to chaos, triggering independence movements that tore apart most of the empire and left the country politically unstable. In the 20th century it suffered a devastating civil war and came under the rule of an authoritarian government, leading to years of stagnation, but finishing in an...