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At present, Spain is a constitutional monarchy, and is comprised of 17 autonomous communities. One of the most important problems facing Spain today is ETA's terrorism - this illegal organization defends Basque independence through violent means, which is condemned by both Central and Basque government, although there is tension between these governments since PNV (the party presently governing Basque Country) longs for greater autonomy from Spain, including the possibility of independence, something Spanish government doesn't accept.

After World War II, being one of few surviving fascist regimes in Europe, Spain was politically and economically isolated and was kept out of the United Nations until 1955, when it became strategically important for U.S. president Eisenhower to establish a military presence in the Iberian peninsula. This opening to Spain was aided by Franco's rabid anti-communism.

Spain remained officially neutral in World Wars I and II, but suffered through a devastating Civil War (1936-39). During Franco's rule, Spain remained largely economically and culturally isolated from the outside world, but slowly began to catch up economically with its European neighbors. Under Franco, Spain actively sought the return of Gibraltar by the UK, and gained some support for its cause at the United Nations. During the 1960s, Spain began imposing restrictions on Gibraltar, culminating in the closure of the border in 1969. It was not fully reopened until 1985.

The most important minority group in the country are the Gitanos. Other indigenous minorities are Mercheros (or Quinquis) and Vaqueiros de alzada.- The latter, meaning "Mountain cow-breeders" dwell in mountain ranges in the Principality of Asturias and have kept historically apart from the valley dwellers. Foreign minorities include South Americans from countries like Argentina, Ecuador or Colombia; black Africans; Arabs and Berbers mainly from Morocco and other countries of North Africa; and Asians from China, Japan, Korea, and Vietnam.

Madrid is also noted for its nightlife and discotheques. Younger madrileños sometimes dance all night, stop off for chocolate y churros at dawn, go home, shower, shave, and go to work. This nightlife, called la movida or la marcha and initially focussed on the Plaza del Dos de Mayo, flourished after the death of Franco, especially during the 80's while Madrid's most cherished mayor Enrique Tierno Galván was in office. A particular hub for this night activity is nowadays the nearby gay village of Chueca. However, as prices continue to rise and more jobs become available, nightlife in Madrid is becoming more and more like that of other European cities such as Stockholm or Munich.

In 1898 Spain lost the Spanish-American War. Cuba gained its independence, and Spain lost its remaining New World colonies—Guam, the Philippines, and Puerto Rico—to the United States. Spain's colonial possessions were reduced to Spanish Morocco, Western Sahara and Equatorial Guinea.

In order to understand the political forces and debates in Spain we have to consider two dimensions: the Right vs. Left dimension and the Nation State vs. Plurinational State dimension. The political parties agendas and the individual citizens opinions can only understood when situated on both dimensions. The Constitution of the Kingdom of Spain states that 1) it is a Nation and 2) that it is formed by Nationalities and Regions. This statement is a contradiction (since Nationality and Nation essentially mean the same thing in political theory), but it was an agreement that struck a balance between the political parties advocating the nation state and those advocating the plurinational state. The territorial organization of Spain into Autonomous Communities of Spain is the administrative realization of this constitutional balancing act.

Under the Bonaparte, Spain failed to embrace the mercantile and industrial revolutions of the 18th century, and also failed to absorb the ideals that of the Enlightenment that were revolutionizing European thought. These missed opportunities, combined with the economic failures of the 17th century, caused the country to fall desperately behind Britain, France, and Germany in economic and political power.

The most well-known variety of Spanish folk music is likely flamenco, a diverse genre created by Andalusian Roma. Flamenco is known since at least the 1770s, and has been through several cycles of dwindling popularity and rebirth. The style has produced many of the most famous Spanish musicians, including singer Camarón de la Isla and guitarist Carlos Montoya. Outside of flamenco, regional Spanish folk music includes the distinct Basque trikitrixa and accordion music, Galician and Asturian gaita (bagpipe) and Aragonese jota. Though some folk traditions have died out or are moribund, some retain great popularity and have been modernized and adapted to new instruments, styles and formats. These include the popular Celtic music of Galicia, the singer-songwriter tradition of nova canço and New Flamenco.

Spanish rule in Morocco ended in 1956. Though militarily victorious in the 1957-1958 Moroccan invasion of Spanish West Africa, Spain gradually relinquished its remaining African colonies. Spanish Guinea was granted independence as Equatorial Guinea in 1968, while the Moroccan enclave of Ifni had been ceded to Morocco in 1969.