After World War II, various countries acceded to the international organizations, they cooperated and competed between each others. At that time, Spain was isolated by the international organizations because she supported the Axis privately at World War II and she was not a democratic regime. For that reason, she couldn’t join the first step of european integration. After Francisco Franco passed away, King Juan Carlos promoted the political reform, and brought Spain to a bright future. Of course, Spain used of her own efforts to open up domestic market gradually and to accede to European Community. She followed and enforced the common policies of European Community, now the national competitiveness of Spain has obviously improved.
Europe has been the driving force of economic policy in Spain over the past four decades and the key factor behind the modernization and globalization of the Spanish economy. The process of accession to the EC was carried out in several stages. First, trade openness, exports were liberalized before 1986, while imports were liberalized from that date onward. Secondly, adjustable measures after accession, such as privatization of public enterprise, industrial restructuring, trade deregulation etc, to increase competitiveness. Finally, complete economic integration, member states must gave up the exchange rate and monetary sovereignty, they carried out a process of nominal convergence and fiscal consolidation for a long time to achieve real convergence between european countries. Therefore, this thesis tries to analyze and prove the positive influence of political and economic transformation on national competitiveness in Spain.
According to the study, we can realize that under the international isolated situation, Spain negotiated for a long time with European Community, finally became member state of EC. Hence, Spain has been transformed peacefully from autocratic and dictatorship government to a democratic regime. Being member state of EC helped Spain to strength economic level and to improve internal political and economic situation. Moreover, the unemployment rate performed better in recent years, national income also increased and economic growth rate soared upward, Spain become more stable in political situation and economic performance .