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With the approval of the Spanish Constitution of 1978 and the arrival of democracy, the old historic nationalities — Basque Country, Catalonia, Galicia and Andalusia— were given far-reaching autonomy, which was then soon extended to all Spanish regions, resulting in one of the most decentralized territorial organizations in Western Europe.

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.

As recently as the mid-20th-century, much of Spain (especially outside of the major cities) remained quite distinct from the rest of Europe. In 1954, V.S. Pritchett could still write of small Spanish towns, "The inn, if there is one, will not be a hotel, nor even a fonda — the Arab word — but perhaps a posada: a place one can ride into with a mule or a donkey, where one can stable an animal and lie down oneself on a sack of straw, the other side of the stall." [Pritchett, 1954 p. 46-47] However, especially since the 1975 death of Francisco Franco, Spain has become increasingly European; Pritchett's rustic posada would be unimaginable today.

Contemporary Madrid came into its own after the death of the Fascist dictator Franco. Years of the Franco regime left Madrid and much the country in economic shambles due to isolation. With his death, Madrid and Spain as a whole began to re-assert itself on the international stage. Within Spain, reaction against the dictatorial bureaucracy centered in Madrid and a history of centralism that pre-dated Franco by centuries has resulted in the successful modern movement towards increased autonomy for the regions of Spain, considered as European regions, under the umbrella of Spain.

Mistreatment of the Moorish population in Morocco led to an uprising and the loss of all North African possessions except for the enclaves of Ceuta and Melilla in 1921. Abd el-Krim, Annual. In order to avoid accountability, the king Alfonso XIII decided to support the dictatorship of general Miguel Primo de Rivera.

Around 1,100 BC Phoenician merchants founded the trading colony of Gadir or Gades (modern day Cádiz) near Tartessos. In the 8th century BC the first Greek colonies, such as Emporion (modern Empúries), were founded along the Mediterranean coast on the East, leaving the south coast to the Phoenicians. The Greeks are responsible for the name Iberia, after the river Iber (Ebro in Spanish). In the 6th century BC the Carthaginians arrived in Iberia while struggling with the Greeks for control of the Western Mediterranean. Their most important colony was Carthago Nova (Latin name of modern day Cartagena).

The latter years of Franco's rule saw some economic and political liberalization, the so-called Spanish Miracle, including the birth of a tourism industry. Francisco Franco ruled until his death on November 20th 1975 when control was given to King Juan Carlos. In the last few months before Franco's death, the Spanish state went into a paralysis. This was capitalized upon by King Hassan of Morocco, who ordered the 'Green March' into Western Sahara, Spain's last colonial possession.

In the 1960s, more than a decade later than other western European countries, Spain began to enjoy economic growth and gradually transformed into a modern industrial economy with a thriving tourism sector. Growth continued well into the 1970s, with Franco's government going to great lengths to shield the Spanish people from the effects of the oil crisis.

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.

While the siesta — an hours-long mid-afternoon break from work — is generally in decline, the typical rhythm of the day in Spain remains relatively distinct from the European norm. Many shops and some museums (though relatively few other businesses) still split their hours into two distinct periods of opening with a two or three hour break in the middle; a paseo (stroll) in the early evening remains a common custom in many smaller cities and to some extent even in the larger ones; the dinner hour is the latest in Europe, typically about 10 p.m.; nightlife begins accordingly late, with many dance clubs (even in relatively small cities) opening at midnight and staying open until dawn; in Madrid in the summer there is nothing unusual about a live musical performance being scheduled for one or two o'clock in the morning.

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.

Over the past thirty years, Spain has become a more secularised society. The number of believers has decreased significantly and for those who believe the degree of accordance and practice to their church is quite diverse.

Except for the subtropical Canary Islands, Spain can be divided into areas experiencing, respectively, a Mediterranean climate; a climate dominated by the Atlantic Ocean; and (in the inner areas) a rather extreme climate with hotter summers and colder winters than nearer the coasts. The generally warm and relatively dry summers have led to a culture in which a lot of life is lived outdoors, whether on a patio in the courtyard of a building or on a public plaza. In Madrid, many of the most popular nightclubs move for several months in the summer to an outdoor terrasa much farther from the center of town than their indoor winter location, continuing in a way the older tradition of the verbena (fair). In the Mediterranean areas (and in the Canary Islands), outdoor meals can be a nearly year-round phenomenon.

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.

According to the latest official poll, 80% of Spaniards self-identify as Catholic, 12% as non-believer, and 1% as other (the remaining 7% declined to state). Of the 1.4% identifying as other, 29% identified as Evangelical Christian, 26% as Jehovah's Witnesses and 3% as Muslim (the rest either mentioned smaller religions or declined to state). According to the same poll, 73% believe in God, 14% don't and 12% are unsure (1% declined to state). Additionally, according to this poll, only 41% believe in Heaven. 24% of the Spaniards think that the Bible is just a fable. Only 25% of Catholics go to church at least once a week.