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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.

Spain is a constitutional monarchy, with a hereditary monarch and a bicameral parliament, the Cortes Generales or National Assembly. The executive branch consists of a Council of Ministers presided over by the President of Government (comparable to a prime minister), proposed by the monarch and elected by the National Assembly following legislative elections.

Terrorism is a problem of present-day Spain, since ETA (Basque Homeland and Freedom) is trying to achieve Basque independence through violent means, including bombings and murders. Although Basque Autonomous government does not condone any kind of violence, the different approaches to the problem are a source of tension between Central and Basque governments. Besides ETA violence, the conflict in the Basque Country is also shaped by the non-acceptance on the part of the spanish state of the right of basque people to choose freely their political status. Recently, 2 political parties - which in previous elections had received the support of around 15% of the popular vote- have been banned due to their negative to condemn publicly ETA violence in the terms that the main spanish political parties wanted.

Spain was part of the Roman Empire and many areas of Spain retain significant Roman architectural remnants. The Roman aqueduct at Segovia is still in use as of 2004; Mérida, now the Extermaduran capital but once the capital of the Roman province of Lusitania, retains over 5 miles of its Roman aqueduct, Roman bridge over the River Guadiana, an arch of Trajan, and significant remnants of a Roman forum, amphitheatre, and a temple popularly accounted to have been dedicated to Diana (goddess). Another Roman bridge crosses the Tagus River at Alcántara. Lesser Roman ruins can be found in the heart of Barcelona.

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.

Spain suffered a shocking terrorist attack, the March 11, 2004 Madrid attacks on its capital's commuter train network, killing 200. Al-Qaeda has been blamed for this attack. Some have attributed the fall of the Aznar government to this attack, which took place just two days before the 2004 elections. At first the public believed ETA was responsible for the bombing. When they learned Al-Qaeda was the true culprit, many voters lashed out at the media and Aznar's government, believing the two had colluded to deceive the public.

On February 20th 2005, Spain became the first country to allow its people to vote on the European Union constitution that was signed in October 2004. The rules states that if any country rejects the constitution then the constitution will be declared void. The final result was very strongly in affirmation of the constitution, making Spain the first and so far only country to approve the constitution via referendum.

Until 1714, Spain was a loose confederation of kingdoms and statelets, under the same king, until King Philip V removed the autonomous status of the Aragonese crown. Moreover, the creation of a unified state in the 19th and 20th centuries has lead to the present situation, apparently simple, but sometimes extremely confusing. During the Second Spanish Republic (1931-1936), the Basque and Catalan were given limited self-government, which was lost after the Spanish Civil War (1936-1939) and restored in 1978 during the transition to democracy.

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.

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.

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.

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.

Madrid, the capital of Spain, is located in the center of the country. Population of the city of Madrid proper was 3,093,000 as of 2003 estimates.

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.

The period of Visigothic rule saw the spread of Arianism briefly in Spain. In 587, Reccared, the Visigothic king at Toledo, having been converted to Catholicism put an end to dissension on the question of Arianism and launched a movement in Spain to unify the various religious doctrines that existed in the land. The Council of Lerida in 546 constrained the clergy and extended the power of law over them under the blessings of Rome.