Shortly after assuming office on 2 December 1982,
Prime Minister Felipe González had to face a worsening economic situation, with high
inflation, soaring
unemployment and a
public deficit at 6%. Among the
new PSOE government's first economic measures were the
nationalization of the
Rumasa holding due to its financial situation, alleged fraudulent practices and continuous evasion from the inspection activity conducted by the
Bank of Spain, the reduction of
working time to 40-hour week, the establishment of a minimum legal
annual leave of 30 days and a
lunch break of 15 minutes. This period saw major reforms being implemented in order to achieve economic recovery as well as equalization of Spain with the remainder of Europe, including an unpopular economic stabilization plan involving a process of
industrial restructuring (which led to the closure of many obsolete industries) and a reform of the
pension system which lengthened the period used to calculate full pension benefits from 10 to 15 years and adopted a new system for pension revaluation. This economic policy received widespread criticism from trade unions—including the historically PSOE-aligned
UGT—leading to strikes and demonstrations opposing the government's economic policy. A new
labor reform was approved, which included fiscal incentives to investment, added protection for unemployed and the easing of temporality through the implementation of
fixed-term contracts. González's first term also saw the establishment of the
Spanish National Health System and
universal health care in Spain, and decriminalization of
abortion in three cases:
therapeutic in cases of serious risk to the physical or mental health of the pregnant woman, during the first 12 weeks;
criminological in cases of woman rape, during the first 22 weeks; and
eugenic in cases of fetus malformations, at any time during pregnancy. Internally, these years were marked by a harsh hostile campaign from
terrorist group ETA, with around one hundred dead throughout the 1982–1986 period as a result of
its activity, which was countered with a similarly harsh government response. The PSOE government also had to deal with the issue of
military insurrectionism, with a profound reorganization of the
Spanish Armed Forces by promoting an increase of civil authority over the military, with the final aim of professionalizing the Armed Forces and end the threat of military coup attempts. Felipe González also came briefly involved in the 1984 German
Flick affair, when
SPD MP
Peter Struck said in the German press that another MP from his party,
Hans-Jürgen Wischnewski, had given one million
marks from the corruption plot to González himself. The Spanish prime minister countered this with a remarkable statement at the time: "I have not received a single mark, a single penny, a single peseta, neither from Flick nor from Flock", and was later acquitted from the scandal by the inquiry commission in Congress. 's first government. Internationally, the PSOE government was successful in culminating negotiations for the Spanish entry into the
European Economic Community (EEC), effective from 1 January 1986. The issue of
NATO membership was more controversial, as the PSOE had campaigned for the holding of a referendum on the issue after
Leopoldo Calvo-Sotelo's move to enter the alliance in May 1982. However, once in power Felipe González evolved to support NATO. According to
Santos Juliá, the main factors that influenced the PSOE government's change of attitude were "pressure from the United States and several European countries; the connection between staying in NATO and Spain–EEC negotiations and the growing favorable stance of the Spanish Defence Ministry to attain closer ties with the Alliance". By 1985, as Spain had signed the Act of Accession to the EEC, preparations for the
referendum on NATO membership started, being eventually held on 12 March 1986. NATO permanence option won the vote by a surprising 53.1% to 40.3%, and the PSOE came out reinforced. Within the opposition, the
Union of the Democratic Centre (UCD) was dissolved in February 1983. Under
Manuel Fraga's leadership, the
People's Alliance (AP) and the
People's Democratic Party (PDP) joined with other parties to form the
People's Coalition, seeking to build on his idea of the "natural majority" of the centre-right in order to win the next general election. At the same time, Catalan politician
Miquel Roca tried to enter national politics by founding the
Democratic Reformist Party (PRD), supported by the Catalan-based
Convergence and Union (CiU), the
Liberal Democratic Party (PDL) of Antonio Garrigues Walker and a number of regional parties, in what came to be known as "Operation Roca". All attempts at forming a common alliance between the three main centre to centre-right political forces—including the growing
Democratic and Social Centre (CDS) of former prime minister
Adolfo Suárez—failed throughout 1985. In the left, the
Communist Party of Spain (PCE) experienced an internal crisis which saw the resignation of its leader
Santiago Carrillo and his succession by
Gerardo Iglesias. Internal disagreements resulted in splits that saw the birth of the
Communist Party of the Peoples of Spain (PCPE) and the
Workers' Party of Spain–Communist Unity (PTE-UC). ==Overview==