Spain and Portugal Celebrate 40 Years of EU Membership

On January 1, 2026, Spain and Portugal will mark four decades since joining the European Economic Community, a significant milestone in their post-dictatorship histories. Initially, both nations faced economic struggles and social upheaval, but their EU membership has dramatically transformed their landscapes.

From Dictatorship to Democracy and Economic Growth

When Spain and Portugal entered the European Economic Community in 1986, they were emerging from years of authoritarian rule. Spain, under the rule of Francisco Franco, had only recently transitioned to democracy following his death in 1975. Meanwhile, Portugal had experienced the Carnation Revolution in 1974, which ended almost 50 years of dictatorship under António de Oliveira Salazar. At that time, Spain’s GDP stood at a mere €226 billion, with an unemployment rate soaring to around 21% and inflation reaching 20%.

Portugal’s situation was similarly bleak, with its GDP only about 60% of the European average, compounded by the economic fallout from the loss of its colonial empire. Both nations viewed EU integration as a pathway to recovery and progress.

A Journey of Transformation

Fast forward to 2025, and the economic landscape of both countries has changed significantly. Spain’s GDP has surged to approximately €1.5 trillion, making it the fourth-largest economy in the European Union. Unemployment has improved, decreasing to 11%, largely due to over €185 billion in EU funds allocated since their accession. These funds have been crucial for developing infrastructure, including motorways and employment programmes.

Portugal has similarly benefited, with its GDP doubling in real terms during the first two decades of EU membership, achieving growth rates of around 6%. The average purchasing power of Portuguese citizens has risen from 50% of the then-EEC average in 1986 to about 75% of the current EU average. Over €100 billion in EU funds have facilitated substantial improvements in infrastructure, education, and basic sanitation.

Beyond economics, the EU has transformed personal lives through initiatives like the Erasmus Programme. Approximately 1.6 million Spanish citizens have participated in this educational exchange since its inception, while over 55,000 Portuguese students have studied abroad in recent years. The adoption of the euro in 1999, officially implemented in 2002, further integrated both countries into the European framework.

Challenges Ahead

Despite these advancements, challenges persist. Both Spain and Portugal were significantly affected by the 2008 financial crisis, with Spain peaking at 27% unemployment in 2013 and Portugal requiring an international bailout. The austerity measures implemented during these crises have left lasting impacts on their social fabric.

Pedro Sánchez, Spain’s Prime Minister, reflected on the journey, stating, “A yearning for progress and hope became the greatest transforming lever of our country. Today, a strong and democratic Spain means a strong and democratic Europe.” Conversely, Luís Montenegro, Prime Minister of Portugal, emphasized the importance of EU membership in fostering economic growth and democratic stability.

While public support for the EU remains robust, with 73% of Spaniards and 91% of Portuguese expressing positive views toward their membership, both nations must address ongoing structural issues. Spain’s productivity lags behind that of Germany and France, and Portugal faces one of the lowest birth rates globally, posing risks to future growth.

As both countries celebrate their 40 years in the EU, they reflect on a transformative journey that has reshaped their economic, social, and political landscapes. With a commitment to further integration, Spain and Portugal continue to play active roles in the European project, aiming for a more secure and prosperous future for their citizens.