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The 20th century initially brought little peace; colonisation of Western Sahara, Spanish Morocco and Equatorial Guinea was attempted as a substitute for the loss of the Americas. A period of dictatorial rule (1923-1931) ended with the establishment of the Second Spanish Republic. The Republic offered political autonomy to the Basque Country and Catalonia and gave voting rights to women. However, with increasing political polarisation and pressure from all sides, coupled with growing and unchecked political violence, the Republic ended with the outbreak of the Spanish Civil War in July 1936. Following the victory of the nationalist forces in 1939, General Francisco Franco ruled a nation exhausted politically and economically until his death in 1975.

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.

The original peoples of the Iberian peninsula (in the sense that they are not known to have come from elsewhere), consisting of a number of separate tribes, are given the generic name of Iberians. This may have included the Basques, the only pre-Celtic people in Iberia surviving to the present day as a separate ethnic group. The most important culture of this period is that of the city of Tartessos. Beginning in the 9th century BC, Celtic tribes entered the Iberian peninsula through the Pyrenees and settled throughout the peninsula, becoming the Celt-Iberians.

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.

The dictatorship of Miguel Primo de Rivera collapsed in 1930. Disgusted with the king's involvement in it, urban population voted for republican parties in the municipal elections of April 1931. The king was forced to resign and a republic was established.

As the Roman empire declined, the Suebi, Vandals and Alans each took control of part of Hispania. In the 5th century AD the Visigoths, a romanized germanic tribe, conquered all of Hispania and established a relatively stable kingdom lasting until 711, when it fell to an invasion by Islamic North African Moors and became part of the expanding Umayyad empire, under the name of Al-Andalus. When the Umayyad empire gave way to the Abbaside empire, an Umayyad exile established the Caliphate of Cordoba, effectively making Al-Andalus independent from the empire.

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.

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.

Roman Catholicism is, by far, the most popular religion in the country, with four in five Spaniards (80%) self-identifying as Catholics. The next group (one in eight, or 12%) is represented by atheists or agnostics. Minority religions account for one in seventy (1.4%) of all Spaniards.

Spanish cuisine is made of very different kinds of dishes due to the differences in geography, culture and climate. It is heavily influenced by the variety of seafood available from the waters that surround the country. As Spain has had a history with many different cultural influences, the richness and variety of its cuisine is overwhelming, but all these ingredients have made up a unique cuisine with thousands of recipes and flavours. Much influence on Spanish cuisine has come from the Jewish and Moorish traditions. The Moors were a strong influence in Spain for many centuries and their food is still eaten in Spain today.

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.

A revived movement for the Christian unification of Spain was capitalized on by the "Catholic monarchs" (Reyes Católicos in Spanish) Isabel I of Castilla and Fernando II of Aragón in order to justify their invasion of Granada, the expulsion of the Jews and the forceful conversion of the Moors. In the 15th century, the Kingdoms of Castile and Aragon were united under Isabel and Fernando. These two able rulers ruled jointly and worked to consolidate the power of the monarchy at the expense of the nobility. During their reign, the castles of many nobles (symbols of aristocratic independence from the monarchy) were demolished, and a system of regular taxation was established. Fernando and Isabel established the basis for the unification of Spain religiously as well as politically and economically.