Moncloa Pacts

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The Moncloa Pacts (Spanish : Pactos de la Moncloa) (specifically, the Agreement on the Program of Sanitation and Reform of the Economy and the Agreement on the Program of Legal and Political Action) were economic and political agreements to address inflation and unemployment during the Spanish transition to democracy, signed on October 15, 1977 at the Palacio de la Moncloa. Spain's Congress of Deputies approved the pacts on October 17, and the Spanish Senate followed on November 11. Signed by representatives of the major labor unions — the Unión General de Trabajadores (UGT) and the Confederación Nacional de Trabajadores (CNT) and the government, the purpose was to stabilize the process of transition to the democratic system during a period of high annual inflation that reached 26.39%. [1]

Contents

Economic problems

There were a lot of economic issues which confluenced into a large crisis that the Government of Spain had to deal with after its inauguration. The petrol crisis of 1973 took some time to reach Spain, the rise of unemployment which was caused by emigration. The death of Franco saw a slow return. There was also capital flight since the last years of Franco's dictatorship. Businesses were used to the corporatism and interventionism of Franco's regime. The economic policy of the transition period as well as the legalization of syndicates which vindicated the working class and sometimes took on a confrontational and militant stance. This confronted businesses with a new situation.

Previous conversations

Before the pacts Adolfo Suárez had engaged with Felipe González and Santiago Carrillo. Their goal was to establish a more stable government since they lacked a majority in the parliament. In addition to that the general courts had yet to be constituent, this was a particular point that of the opposition and a portion of Suarez's own government, the Union of the Democratic Centre.

Enrique Fuentes Quintana at Suárez's behest engaged in talks with the newly legalized syndicates and unions such as General Union of Workers and Workers' Commissions (CC.OO). This was done to solve the social conflict. The General Union of Workers (UGT) and the CNT originally rejected the proposals. However the UGT and the CC.OO ended up ratifying the pact. The CNT was the only one who wholly rejected it.

See also

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References

  1. DatosMacro IPC. "Datosmacro.com España 1977".

Bibliography