Jose Maria Aznar: Spain 1996-2004

Although Jose Maria Aznar became prime minister of Spain in 1996, he was forced to form a coalition government. The government thus included Catalan Convergence Union Party, CiU, the Conservative Popular Party and the Socialists Party. It was not until the March 2000 elections, when the Popular Party won a decisive victory and was able to establish a government without coalition powers.

Aznar’s government primary agenda was to reduce Spain’s budget deficit. This would qualify the nation for the adoption of a common European currency in 1999. This government made drastic cuts in public investment and froze public sector pay. Popular reactions to these measures were general hostility. However, the measure implemented helped Spain meet the European Union’s criteria for participation in the single currency. Ten other European Union nations along with Spain transferred their currency structures over to the Euro monetary system. Spain thus no longer carries the peseta, instead carries the Euro.

Aznar’s government pursued a variety of free-market policies that made the economy emerge as one of the strongest in Europe. Creating and implementing policies through legislation once the economy grew, Aznar cautiously approached privatization of state-owned industries. Doing so along with implementing labor laws reforms to increase flexibility of businesses over employment boost the hiring of workers. For, unemployment gradually declined, Spain’s interest rates fell and business investment expanded. Sr. Jose Maria Aznar success as prime minister of Spain is recognized in Spain’s economy. During his term Spain experienced a 4 percent annual growth signifying a well-balanced economy.

In 2004, the Spanish National Election voted out Aznar and his Conservative Popular Party. It is determined to be a controversial election between the Conservative Popular Party and the democratic centre-left PSOE or The Spanish Socialist Worker’s Party. Terrorist bomb attack in Madrid three days before the election may have greatly influenced the election.  A total of 191 people died when several commuter trains were bombed. The government party and the PSOE blamed the ETA, Basque separatist organization. Later when an audiotape in Arabic was found where the terrorist had boarded one of the trains, the government was accused of manipulating information as to who was really responsible for the attack. Protesters shouted outside the government party’s headquarters all night and into the early morning of the day of the election.

The PSOE accused the government party of creating a political hoax in an attempt to influence the election. Nothing conclusive was determined as to whether the ETA was in fact responsible for the bombing. However, considering Aznar’s past experience with the CiU as a coalition of the government, the PSOE may have had a valid argument. In order to receive support from the Catalan and Basque parties, Aznar had surrendered powers to the regional (CiU Party) government early in his career in 1996. This dubious relationship compounded with demonstrators’ protest of the bombing, Aznar’s popularity gradually declined.

The result of the election was a close victory for the PSOE, led by Jose Luis Rodriguez Zapareto, who won with 164 seats while the Conservative Popular Party received 148. Chances are the numerous demonstrations accusing the government’s party of lying about the Madrid bombing influenced the voters in favor of the Spanish Socialist Worker’s Party. The people viewed the bombing as having a negative enough impact on Aznar and his government resulting in his lost of the election of 2004.

The new Spanish Prime Minister of Spain became Jose Luis Rodriguez Zapatero. Zapatero considered his party, the PSOE to be the first true democratic government where a cabinet consisting of equal numbers of men and women existed. To solidify this premise, he appointed a woman as his Deputy Prime Minister for the first time ever.