What 40 years in the EU have meant for Spain
Forty years after joining the European Union, Spain has emerged as one of Europe's strongest economic performers. We examine the role EU membership has played in the country's economic, social, and institutional transformation.
Since joining the EU in 1986, Spain has undergone profound change. A new EsadeGeo report, 40 years of Spain in the EU, written by Senior Fellow Juan Moscoso del Prado and Researcher Dario Arjomandi shows how the country has transitioned from political and economic isolation into one of Europe's fastest-growing major economies. The country now boasts one of Europe’s healthiest populations and has one of the continent’s most extensive transport networks. The report argues that Spain’s EU membership has been a major driver of these achievements.
Through decades of convergence with its EU neighbors, Spain has improved not only in economic terms, but also in education, healthcare, infrastructure, environmental sustainability, and democratic institutions. The report illustrates this progress through 40 visual indicators that clearly show how the EU has helped to redefine Spain, while also showing Spain’s contribution to the EU as a whole.
A different country
Life expectancy is just one metric that shows a striking improvement. Four decades ago, Spaniards lived to an average of 76.7 years. Today life expectancy has increased to 84 years, which is the highest in Europe and the third-highest globally. People are not only living longer but also enjoying a better quality of life, due in part to the healthcare system, which now performs above the OECD average in terms of most key indicators.
The education system is far more robust today. Not only has school attendance for 18-year-olds risen from 28% in 1986 to 80% today, but access to higher education has improved dramatically, especially for women over 25. Spain is now ranked among the leading countries in Europe for the percentage of young adults with tertiary education, reflecting decades of investment in human capital.
Integrating into Europe has opened the door for student exchanges. In 1987, only 95 people took part in the Erasmus student exchange program. Fast forward to today, and more than one million Spanish students have participated since then. Spain is also the country that hosts the largest number of students annually. Studying abroad is now a regular part of life for many Spanish students. This opportunity also helps to strengthen a shared European identity.
In tandem, Spain has increased its score on the United Nations Human Development Index. It’s now ranked as one of the most developed societies in the world.
Opening the economy
Spain's economic transformation has also been noteworthy. Since joining the EU, GDP per capita has almost doubled, in line with continued productivity growth and better living standards. At the same time, Spain has reduced the gap with the European average, from 72% of EU income per capita in 1986 to 92% in 2024.
Greater openness has been a main driver of this progress. Single Market membership has enabled Spanish companies to grow internationally, with exports doubling as a share of GDP and more than 60% destined for other EU member states. Foreign direct investment has also increased significantly, while the number of foreign companies operating in Spain has increased sevenfold since 1986, emphasizing the country's role as an attractive destination for international business.
The picture is similar for new businesses. The number of new companies registered each year has quadrupled, due to an increasingly dynamic entrepreneurial ecosystem supported by access to a market of more than 440 million consumers.
And despite the period between 2021 and 2025 being marked by inflation, geopolitical uncertainty, and slowing global growth, the report notes that Spain outperformed many of its European peers. Showing its resilience, the Spanish economy grew on average around 1.5 percentage points faster than the Eurozone.
Europe helped build modern Spain
European integration has supported long-term investment and opened markets. Over nearly four decades, Spain has been a net recipient of EU funding, with structural and cohesion funds financing transport infrastructure, water management, environmental protection, digitalization, research, and rural development. More recently, the NextGenerationEU recovery program has allocated about €55 billion to Spain since 2020, supporting projects to accelerate the green and digital transitions.
Many of Spain’s success stories are a result of this sustained investment. This includes the development of Spain’s high-speed rail network, which is now Europe’s largest, and the longest network of motorways, which has improved connectivity between regions.
As a result of sustained investment, renewable sources now account for 57% of power generation, making Spain a leader in Europe’s energy transition. Back in 1986, this figure was just 20%. Today, the price of electricity in Spain is amongst the lowest of the largest EU countries such as Germany, Italy, and France.
While EU membership has helped Spain’s development, the report doesn’t claim that all progress is a result of joining. There have been domestic reforms, technological progress, and private investment that have also played essential roles. However, integration into the EU helped accelerate the development and modernization of multiple sectors.
Spain now gives back
The benefits now flow in both directions. The initial boost that EU membership gave to Spain is clear, but now, after 40 years, it’s also apparent that Spain is contributing to the EU too.
Spain has become a benchmark for excellence in several fields. When it comes to health, Spain is the world leader in organ donation and transplant rates. In terms of conservation, Spain has the highest number of UNESCO Biosphere Reserves worldwide.
Spain contributes to the wider European economy thanks to its growing international competitiveness. It is one of the EU's leading agricultural producers, the continent's second-largest vehicle manufacturer, and one of the world's most visited tourist destinations.
Of course, there are some challenges. While unemployment rates in Spain have fallen to their lowest in decades, they are still among the highest in the EU, especially in terms of youth unemployment. This highlights a need for labor market reforms.
Even so, the broader trajectory described by the report is one of sustained progress. Spain's experience illustrates how long-term integration can reshape a country's economy, institutions, and society over time. Forty years after joining the European project, Spain is no longer defined by the distance it has traveled toward Europe, but increasingly by the contribution it makes to Europe's future.