What is now the 8th largest economy in the world, Spain inherited a regulated economy from Francoism after 1975. Franco initiated, in the 1960s, a set of deregulating moves away from its initial total control of the economy; these, along with large infrastructure projects, resulted in the paramount economic growth almost overnight which came to be known as the "Spanish Miracle". By Franco's death and the dawn of the present day constitutional monarchy, interventionism was still widespread: basic products had their prices fixed by the government, large public firms controlled all sectors regarded as strategic, shops had fixed opening and closing times, both passive and active interest rates were fixed by the government. All these rigidities and more were made obvious by the 1973 oil crisis, which terminated the previous expansion cycle and unleashed a roughly 10 years period of severe industrial crisis (1975-1985). This blow stressed the need to modernize the economy and join the European Community. Spain's accession to the European Union (EU), in January 1986 ushered the country into opening its economy, modernize its industrial base and revise economic legislation. In doing this effort -supported from the EU with large amounts of funds from the European Regional Development Fund-Spain greatly improved infrastructures, increased GDP growth, reduced the public debt to GDP ratio, reduced unemployment from 23% to 10%, and reduced inflation to under 3%.
Spain occupies most of the Iberian Peninsula in southwest Europe, and its territory includes the Balearic Islands (Mallorca, Menorca, Ibiza, Cabrera and Formentera) in the Mediterranean and the Canary Islands (Gran Canaria, Tenerife, Lanzarote, La Palma, La Gomera, El Hierro, Fuerteventura and La Graciosa) in the Atlantic Ocean and Ceuta and Melilla, located in northern Africa. In the north, Spain borders with France and Andorra, with the Pyrenees as a natural frontier. In the west, Spain borders Portugal. Much of the mainland is high plateau, with mountain ranges, including the Pyrenees, in the north and the Sierra in the South. The plateau experiences hot summers and cold winters—it is cooler and wetter to the north.
