Spain and Portugal Celebrate 40 Years of EU Membership

On March 25, 2026, Spain and Portugal will commemorate 40 years since they joined the European Economic Community, a pivotal moment that transformed both nations. This anniversary prompts a reflection on how far each country has come since the days when they were emerging from decades of dictatorship and economic distress.

Historical Context and Initial Challenges

When Spain and Portugal signed the Accession Treaty in 1986, their political landscapes were still bearing the scars of authoritarian rule. In Spain, the death of fascist dictator Francisco Franco was a recent memory, while in Portugal, the 1974 Carnation Revolution had just ushered in a new era of democracy. At that time, Spain’s economy was struggling, with a Gross Domestic Product (GDP) of merely €226 billion and an unemployment rate nearing 21%.

Portugal faced similar economic challenges, with its GDP averaging only around 60% of the European average. The aftermath of colonial rule and the absence of protected markets hindered its economic development. Both nations were deeply aware that their future prosperity was linked to their participation in the European project.

Significant Economic Progress

Fast forward to 2025, and the economic landscape of both countries has changed dramatically. Spain’s GDP has surged to approximately €1.5 trillion, making it the fourth-largest economy in the European Union. Unemployment has decreased to 11%, a significant improvement fueled by over €185 billion in EU funds since their accession. These funds have been instrumental in building infrastructure, modernizing agriculture, and supporting employment initiatives.

Portugal has experienced remarkable growth as well. Its GDP doubled in real terms during the first two decades of EU membership, driven by growth rates averaging around 6% until the early 2000s. The purchasing power of the average Portuguese citizen increased from 50% of the EEC average in 1986 to nearly 75% of the current EU average. The modernization of critical infrastructure, including roads and ports, has been supported by over €100 billion in EU funds.

The impact of EU membership extends beyond economic metrics. The Erasmus programme, which facilitates student exchanges across Europe, has allowed 1.6 million Spaniards to study abroad, while more than 55,000 Portuguese university students have benefited from similar opportunities in recent years. The freedom to travel, study, and work across EU borders has become a cornerstone of life in both nations.

Ongoing Challenges and Future Prospects

Despite the considerable progress, challenges remain. Both countries were significantly affected by the 2008 financial crisis, with Spain’s unemployment peaking at 27% in 2013 and Portugal requiring a bailout. The austerity measures that followed left lasting impacts on social services and public sentiment.

Spanish Prime Minister Pedro Sánchez recently remarked on the transformative journey of both nations, stating, “A yearning for progress and hope became the greatest transforming lever of our country.” In Portugal, Prime Minister Luís Montenegro highlighted the profound changes brought about by EU integration, underscoring its role in economic and social advancements.

Both countries continue to grapple with structural issues. Spain’s productivity lags behind that of Germany and France, while Portugal faces one of the lowest birth rates globally, posing a threat to future growth. Nevertheless, public support for the EU remains robust, with 73% of Spaniards and 91% of Portuguese citizens expressing positive views about EU membership.

As Spain and Portugal celebrate their 40-year journey in the European Union, they reflect on a shared commitment to collective growth and democratic values. The Lisbon Declaration, signed by both the prime minister and president during the anniversary celebrations, emphasizes their dedication to enhancing the European project and fostering a prosperous, cohesive future for all member states.