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Political & Legal

Political

The Spanish Constitution was approved by the Spanish parliament on October 31, 1978, ratified

by national referendum on December 6th1978. The Constitution contains the basic principles of

the political system and it is the supreme rule of the Spanish legal system.

Spain is defined by Constitution as a social, democratic and law-abiding country whose

sovereignty belongs to the Spanish people.

The politic form of the Spanish State is the Parliamentary Monarchy. The King is the Head of

State and exercises only the functions expressly attributed to him by the Constitution and the

laws.

The Prime Minister of Spain, known in Spanish politics as the President of the Government of

Spain is the head of Government of Spain. The current office is established under

the Constitution of 1978. The King of Spain nominates a candidate for the presidency that stands

before the Congress of Deputies for a Vote of Confidence in a process known as a Congressional

Investiture, effectively an indirect election of the head of government by the elected

Congressional delegates.

The country is divided in 17 Autonomous Communities, each with its own Parliament and

Government. Even though the Constitution defines Spain as unitary and permanent it also

recognizes and guarantees the principle of autonomy of nationalities and regions. Even though,

Spain is legally a central country, the foreign investor will find the many levels of

administrations in Spain very similar to those on a federal country as the United States.

In the last twenty years Spain has adopted a three-tier government: CENTRAL, REGIONAL,

AND LOCAL. This change has helped move Spain to a more democratic government rather

than the traditional authoritarian style of government. The country of Spain is a constitutional

monarchy.

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CENTRAL GOVERNMENT

1. CONSTITUTIONAL MONARCHY Monarch is the head of the state Is the figurehead of International affairs Politically neutral and unaffiliated

2. EXECUTIVE Prime Minister appointed by Monarch with approval of Bicameral Cortes Deputy Prime Minister Cabinet Members

3. BICAMERAL CORTES Lower House

Congress of Deputies 350 Members More Power than the Upper House

Upper House The Senate 259 Members

REGIONAL GOVERNMENT

1. Autonomous Communities 17 self governed Unicameral Regional Parliaments

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LOCAL GOVERNMENT

1. Provinces 50 separate Provinces Ensure provision of Municipal Services Coordinate involvement with Local Government, Autonomous Communities and

the State

2. Municipalities

Current King

Name: Juan Carlos I

Reign: 22nd

November 1975-present

Prime Minister

Name: Maiano Rajoy Brey

Reign: 21st

December 2011-present

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Legal

Civil law system rooted in Roman Law. Kingdom of Spain is a Parliamentary Monarchy. Spanish Constitution (1978) creates three levels of government: Central, 17

Autonomous Communities and Municipal Governments.

Power is divided between the legislative branch (parliament), executive branch(government) and judicial branch.

Spanish Judicial System

Constitutional Court Supreme Court National High Court Territorial High Courts Provincial High Courts Courts of First Instance Municipal Courts Courts of Peace

Economy

Spains mixed capita list eco nomy is the 13th largest in t he wor ld, the fifth-

largest in Europe and the fourth-largest in the Euro zone, based on nominal GDP

comparisons. It is regarded as the world's 23rd most developed country, among the

countries of very high human development. Until 2008 the economy of Spain had been

regarded as one of the most dynamic within the EU, attracting significant amounts of

foreign investment.

Its per capita income roughly matches that o f Germany and France.

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

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of 2008. GDP contracted by 3.7% in 2009, ending a 16-year growth trend, and

by another 0.1% in 2010, before turning positive in 2011, making Spain the

last major economy to emerge from the global recession.

The reversal in Spain's economic growth reflected a significant decline inconstruction amid an oversupply of housing and falling consumer spending,

while exports actually have begun to grow. Government efforts to boost the

economy through stimulus spending, extended unemployment benefits, and

loan guarantees did not prevent a sharp rise in the unemployment rate, which

rose from a low of about 8% in 2007 to over 20% in 2011. The government

budget deficit worsened from 3.8% of GDP in 2008 to 9.2% of GDP in 2010 .

Spain's large budget deficit and poor economic growth prospects have made it

vulnerable to financial contagion from other highly-indebted euro zone

members despite the government's efforts to cut spending, privatize

industries, and boost compet itiveness through labor market reforms

GDP ( Purchasing Power Parity) : $ 1.432 trillion

GDP (Real Growth Rate): 0.7%

GDP (Per Capita): $ 31,000

GDP- Composition by Sector:

Agriculture: 3.2% Industry: 25.8% Services: 71%

Inflation Rate: 3.1%

Exports: $ 330.6 b illion

Imports: $ 384.6 billion

Reserve of Foreign exchange and Gold : $31.91 billion

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Technology

Technology is not the perceived area where Spain has a strong association but

nevertheless Spanish engineers invented the submarine, the autogiro (the precursor of the

helicopter), the cable car, and the chess player, a robot which could be defined inhistorical terms as the first computer.

Today, Spain is the world leader in wind energy production and is one of the most

advanced countries in photovoltaic solar energy.

Its leadership in the fields of air traffic control, telecommunications antennae, armed

forces and airline simulators, automatic maintenance systems, election results control,

etc.

Spanish Institute for Foreign Trade, (ICEX) the agency entrusted with fostering business

internationalization, has recently launched an international promotion campaign with the

slogan Spain, technology for life. Its aim is to link the countrys new technological

capacity to the importance of being able to take advantage of new technologies for the

purpose of improving personal quality of life, something Spain is renowned for.

Distribution System

Distribution has become a key factor in supplying the consumer market. Sales channels to

consumers have developed significantly in the last few years, ranging from traditional

distribution methods, in which wholesalers sell to traditional shops and those shops sell to

the public, to more sophisticated methods, with an increased presence of large

multinational supermarkets, retail stores and central purchasing units.

The major competitors to U.S. exporters and investors in Spain are Western European

firms, although Japanese and Chinese companies have emerged as formidable

competitors as well. Cost, financing terms, and after-sales service play important roles in

a firm's market success. Since Spain joined the EU, member states' exports to Spain have

benefited from lower tariffs than U.S. goods, which remain subject to the EU's Common

External Tariff.

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The Spanish market is made up of a number of regional markets and two major hubs,

Madrid and Barcelona. The vast majority of agents, distributors, foreign subsidiaries, and

foreign trade related entities operates in these two hubs or has some type of presence

there. In recent years, the autonomous regions have created their own investment

promotion agencies and are heavily promoting the establishment of foreign firms in their

territories. As a consequence, some foreign firms have successfully isolated their

investment from the major hubs.

Indian Spain Foreign Trade

Year

India's

Exportsto

Spain

India's

Importsfrom

Spain

Total

Trade

Balance

of

Trade

%

Growth

(in US$

mn)

(in

US$mn)

(in US

$ mn)

(in US

$ mn)

2008 3,454.03 1,136.20 4590.3 2317.7 15.2

2009 2,544.70 1136.8 3681.6 1408 -20

2010 3356.19 1570.41 4926.6 1785.8 33.81

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Bibliography

https://www.cia.gov/library/publications/the-world-factbook/geos/sp.html http://www.globaltrade.net/f/business/text/Spain/Selling-Distribution-Networks-

Distribution-and-Sales-Channels-in-Spain.html

http://www.leadingbrandsofspain.com/spain/tech/ http://en.wikipedia.org/wiki/Politics_of_Spain