But it began to recover from recession in the 1950s, with a rise in tourism and aid from the US.

OVERVIEW

After Franco's death in 1975, the authoritarian regime transformed into democratic government with King Juan Carlos as head of state. The constitution of 1978 enshrines respect for linguistic and cultural diversity within a united Spain.

The country is divided into 17 regions which all have their own directly elected authorities. The level of autonomy afforded to each region is far from uniform. For example, Catalonia, the Basque Country and Galicia have special status with their own language and other rights.

Andalucia, Navarre, Valencia and the Canaries in turn have more extensive powers than some other regions. Asturias and Aragon have taken steps to consolidate language rights.

It is a complex and evolving picture. One of Spain's most serious domestic issues continues to be tension in the northern Basque region.

The Basque separatist group Eta is believed to have been responsible for the deaths of more than 800 people since it carried out its first killing in 1968. The Supreme Court finally approved a government request for a permanent ban on the Basque separatist party Batasuna in March 2003, despite the party's persistent denial that it is Eta's political wing.

Spain shares the Iberian peninsula with Portugal and its territory includes the Balearic Islands, the Canary Islands and two North African enclaves.

From Velazquez in the seventeenth century, through Goya straddling the eighteenth and nineteenth, to Picasso in the twentieth, Spain has the proudest of traditions in art.

Spanish Flamenco music and dance are widely admired around the world while Cervantes' novel Don Quixote is one of the most popular ever written.

Cinema is much loved in Spain and the films of directors such as Pedro Almodovar attract huge audiences.

FACTS

• Population: 43 million (official figure, 2004)
• Capital: Madrid
• Area: 505,988 sq km (195,363 sq miles)
• Major languages: Spanish (Castilian), Catalan, Gallego (Galician), Euskera (Basque)
• Major religion: Christianity
• Life expectancy: 76 years (men), 83 years (women)(UN)
• Monetary unit: 1 Euro = 100 cents
• Main exports: Transport equipment, agricultural products
• GNI per capita: US $16,990 (World Bank, 2003)
• Internet domain: .es
• International dialling code: +34

LEADERS

Head of state: King Juan Carlos I

Spaniards honour King Carlos for ensuring the country's transition to democracy after the death of the former dictator, General Franco, and for saving Spain from a coup attempt in 1981.

Prime minister: Jose Luis Rodriguez Zapatero

Socialist Workers' Party leader Jose Luis Rodriguez Zapatero won a surprise election victory over Jose Maria Aznar's conservative Popular Party in March 2004. Polling was overshadowed by a series of explosions on Madrid commuter trains in which more than 200 people died just days beforehand.

Spanish Prime Minister Zapatero Mr Aznar's government had been quick to blame the Basque separatist group Eta for the bombings, but in the early stages of the investigation suspicion mounted that the Islamic militant group al-Qaeda was involved.

Mr Aznar had allied himself closely with the positions of Washington and London on military action in Iraq and sent 1,300 troops to serve with multinational forces there. Following his election victory, Mr Zapatero described both the war and the occupation of Iraq as a "huge disaster" and, in line with his election pledge, said that he would withdraw Spanish forces within months unless the UN assumed control there. Spain's 1,300 troops were pulled out of Iraq at the end of May 2004.

 Mr Zapatero has said that his first priority is to counter terrorism and called for a new international alliance against it.

 The Socialists are some seats short of an absolute majority. However, Mr Zapatero said he would not seek to form a coalition but would govern through dialogue with other groups. He is expected to take a tolerant approach towards nationalist aspirations in the Spanish regions.

He pledges to work to boost growth while improving social welfare measures and simplifying the tax system. Mr Zapatero was born in 1960. His grandfather, a Republican army officer, was shot dead during the Civil War. He studied law but his career has been largely devoted to politics.

He joined the Socialist Party while still in his teens and first entered parliament at 26. He became party leader in 2000. Mr Zapatero is married and has two daughters.

• Foreign minister: Miguel Angel Moratinos
• Interior minister: Jose Antonio Alonso
• Defence minister: Jose Bono Economy and
• Finance minister: Pedro Solbes

MEDIA

Broadcasting in Spain has witnessed a spectacular expansion in recent years with the emergence of new commercial operators and the launch of digital services.

The cable and satellite TV markets are expanding steadily, sustained by the recently-launched digital channels. But the introduction of digital terrestrial TV (DTT) has been less successful; pay-TV operator Quiero closed in 2002.

 A relaunch of DTT has been mooted, with the government aiming for a switch-off of analogue TV transmissions by 2010. Home-produced dramas, "reality" shows and long-running "telenovelas" are staple fare on primetime TV. Public radio and TV services are run by RadioTelevision Espanola (RTVE), which is funded by advertising and state subsidies.

RTVE operates alongside many private radio and TV stations on a national and regional level. In spite of the proliferation of print and broadcast media, and their diverse political stances, concerns have been raised about political influence in the media, and particularly in public broadcasting.

The press

• El Mundo - Madrid-based daily
• El Pais - Madrid-based daily
• ABC - Madrid-based daily
• La Razon - Madrid-based daily
• La Vanguardia - Barcelona-based daily
• El Periodico de Catalunya - Barcelona-based daily

Television

•  TVE - public, services include national networks La Primera and La 2, satellite-delivered TVE Internacional, rolling news channel 24 Horas
• Tele Cinco - national, commercial
• Antena 3 - national, commercial
• Canal Plus Espana - commercial, pay-TV channel

Radio

RNE - public, services include speech network Radio 1, cultural network Radio Clasica, youth-oriented Radio 3, news station Radio 5 Todo Noticias

• Cadena SER - commercial
• Onda Cero - commercial
• Cadena COPE - church-controlled

News agencies

• EFE - state-run
• Europa Press - private
• Vasco Press - private, Bilbao-based