Although at the crossroads of the Atlantic and the Mediterranean, Europe and Africa, Spain was internationally isolated under General Franco's post-Civil War (1936-39) dictatorship.

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

OVERVIEW

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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

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SPAIN FACTS Population: 41 million (UN, 2003) Capital: Madrid 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 Average annual income: US $14,300 (World Bank, 2001) Internet domain: .es International dialling code: +34

LEADERS

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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 Maria Aznar

In March 2000, Prime Minister Jose Maria Aznar's Popular Party became the first party of the right to gain an absolute majority in parliament since democracy was restored in 1977.

Mr Aznar was barely known outside Spain when he first became prime minister in 1996, ending the 14-year rule of Socialist Prime Minister Felipe Gonzalez.

His international profile was raised considerably when, in the US-led build up to war against Iraq, he allied himself closely with the positions of Washington and London in backing military action.

Born in 1953 into a right-wing family - his grandfather was a friend of General Franco - Mr Aznar did not enter politics until his mid-20s.

Commentators harp on his career beginnings as a provincial tax inspector - but this has made the quiet conservative all the more attractive to those who see him as the architect of Spain's new-found prosperity.

After two terms in office Mr Aznar will stand down as prime minister when the next elections are held in March 2004. The Popular Pary has selected Mariano Rajoy, who has held various posts in government, to lead it into the campaign.

Foreign minister: Ana Palacio Interior minister: Angel Acebes

MEDIA

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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 has been less successful; pay-TV operator Quiero closed in 2002.

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.

The Spanish media is considered to be free from political influence and the major privately-owned newspapers have been active in investigating high-level corruption.

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