The first socialist government was faced with an economy of low growth rates (with an increase in GDP of 1.2% in 1982), high inflation rates (14% that same year), which were clearly higher than those in other European countries, a deficit in the balance of payments on current account of US$4,000 million, a high public deficit of almost 6% of the GDP, and a high and growing rate of unemployment.

To fight this situation, a gradual adjustment policy on a medium term basis was followed, in accordance with a series of measures proposed by the European organizations, with the objective of reducing basic desequilibria -inflation, the foreign debt, the public debt and unemployment. At the same time that measures were adopted to correct macroeconomic imbalances, the necessary and delayed industrial adjustment was approached, and was carried out gradually in order to mitigate the inevitable social costs. In this way, the authorities endeavoured to establish the basis for sustained growth and prepare the Spanish economy for future entry into the European Economic Community (EEC). After a three year period of adjustment, the economy entered a phase of expansion coinciding with a favourable international climate, and on 1 January 1986, Spanish accession to the EEC became a reality.

If the general situation became more favourable after 1986, this was due to the fall in the price of oil (from US$27 per barrel to less than US$15) registered during 1985, which stabilized the following year. This fact was even more beneficial for all the crude oil importing nations, since it supposed an increase in their national income through an improvement in the real relationship of currencies. The benign international climate was complemented by the fall of interest rates, thereby increasing investment. Lastly, the slow depreciation of the dollar, which had been rising uninterruptedly from 1980 to 1985, decreased inflationary pressures. With the fall in and moderation of international prices, basically of oil, money and the dollar, the international economy in general, and the economies of the industrialized countries and of Spain in particular, entered a promising state of expanding growth.