Importance of the Moncloa Pacts

When the Spanish began a democratic stage after the Franco dictatorship, the country was in a very difficult economic situation. Inflation was reaching exorbitant levels, unemployment was rising and companies had significant debts.

The then UCD government led by Adolfo Suárez had to face a triple challenge: heal the social wounds caused by the previous totalitarian stage, consolidate the democratic system in the face of coup threats and terrorist groups and to clean up the economy that was in a convulsive situation caused by the oil crisis in 1973.

In 1977 the different political forces agreed to correct the course of the nation. This agreement is known as the Moncloa Pacts.

Political parties with parliamentary representation signed an alliance to boost the national economy

The Moncloa Pacts were approved in October 1977 after the first general elections of the democratic stage. The main measures that were promoted affected all kinds of areas and institutions.

An economic recovery policy was launched, an improvement in the control systems of the

public spending, a reform of the social Security and the financial system, new measures to promote urban planning and access to housing, reforms in the education system, promotion of public companies and new policies for the development of the agriculture and fishing.

In summary, measures were adopted so that the economy would have more solid and efficient foundations.

The measures adopted were effective as a whole

As a consequence of the agreements, inflation was reduced (in 1977 it reached levels of 26% and the following year it was reduced to 16%). At the same time, economic instability was significantly reduced.

Apart from the economic measures, it should be noted that these agreements revealed that the government and the opposition had to reach agreements and abandon the systematic confrontation. From a political point of view, the climate of dialogue that was generated was decisive for a new challenge, the elaboration of a new Constitution.

At present, this act is a historical reference and in this sense it has been stated that a new edition of those agreements would be necessary.

After more than forty years, most historians consider that they were key in the transition period towards democracy.