Spain is a democracy which is organized as a parliamentary monarchy. The head of state is King Juan Carlos I. The President of the Government (Prime Minister) is José L. Rodríguez Zapatero, who has highlighted matters to be dealt with during his administration. He aims to fight tax fraud, cut government intervention in business, and advocate innovation, research and development. In addition, he plans to reintroduce labor market regulations that had been done away with by the Aznar government. Spain’s economy has been viewed lately as one of the most vibrant in the EU (member of the EU since 1986), even able to step into the leading role of much larger economies like Germany and France, drawing considerable amounts of foreign investment.

According to the World Bank, Spain's economy is the eighth largest worldwide and the fifth largest in Europe. The absolute GDP was valued at $1.12 trillion as of 2005, ahead of Canada and following Italy. Its GDP per capita is listed 22nd, ahead of Singapore and following the United Arab Emirates. Spain's mixed economy provides for a GDP which on a per capita basis is 90% of that of the four leading West European economies and slightly below the European Union average. The centre-right government of the former President of the Government (Prime Minister) Aznar worked successfully to gain admittance to the first group of countries launching the euro in 1999. Spain has an established European standard in medical and social security services, and is stable both politically and economically.