First Republic (1873-74); and finally the Spanish-American War (1898) in which Spain lost Cuba Puerto Rico and the Philippines to the United States. A period of dictatorial rule (1923-31) ended with the establishment of the Second Republic. Most of it was dominated by increasing political polarization culminating in the leftist Popular Front electoral victory in 1936.

Pressures from all sides coupled with growing and unchecked violence led to the outbreak of the Spanish Civil War in July 1936.

After the victory of his nationalist forces at the end of the 1930s Gen. Francisco Franco ruled a nation exhausted politically and economically. Spain did not participate in World War II but followed a pro-Axis policy. In results Spain was isolated by the victorious Allies at the beginning of the postwar period and the country did not join the United Nations until 1955.

At the end of 1950 Spain began liberalizing trade and capital flows particularly foreign direct investment. But success of economic liberalization, Spain remained the most closed economy in Western Europe.

In 1960s and 1970s Spain began to be transformed into a modern industrial economy with a thriving tourism sector.Its economic expansion led to improved income distribution and helped develop a large middle class.

Social changes brought about by economic prosperity and the inflow of new ideas helped set the stage for Spain's transition to democracy during the latter half of the 1970s.

When General Franco died in November 1975 Prince Juan Carlos de Borbon y Borbon Franco's personally designated heir assumed the titles of king and chief of state.

Dissatisfied with the slow pace of post-Franco liberalization in July 1976 the King replaced Franco's last prime minister with Adolfo Suarez. Suarez entered office promising that elections would be held within one year and his government moved to enact a series of laws to liberalize the new regime.

Spain's saw its first elections since 1936 to the Cortes (parliament) were held on June 15 1977. The Prime Minister Suarez's Union of the Democratic Center (UCD) won 34% of the vote and the largest bloc of seats in the Cortes.

With Suarez on the wheel, the new Cortes set about drafting a democratic constitution which was overwhelmingly approved by voters in a December 1978 national referendum.