Since the death of General Franco in 1975, a new Spanish constitution has come into effect that has completely radicalized and brought about significant political changes in Spain. Spain has ceased to be a dictatorship and has transformed to a democratic state. The country recognizes the King as its titular head who ratifies laws, promulgates and dissolves the legislature, heads the armed forces, and proposes candidates for the office of the Prime Minister. At the same time, through the principle of universal adult suffrage, Spain also elects a Prime Minister to head the Spanish government.

The transition to democracy has not been smooth, as this political change in Spain has not been acceptable to some sections of society—particularly the military. On February 23, 1981, a rebelling faction of the military tried to impose its own rule on the Spanish government. But King Juan Carlos was able to put down the rebellion, without any violence, by exerting his personal authority. In October 1982, the Spanish Socialist Workers Party (PSOE), led by Felipe Gonzalez, won an absolute majority. Gonzalez and the PSOE led the Spanish government for the next 13 years. During that period, Spain joined the North Atlantic Treaty Organization (NATO) and the European Community. In this period the Socialists tried to implement several economical and educational reforms. The private schools getting government subsidies were made accountable and the parents were given more rights for assessing teachers of these schools.

In March 1996, there was again a political change in Spain, as Jose Maria Aznar's Popular Party (PP) won the votes. Aznar decentralized the Spanish government, and liberalized the economy. The central government delegated powers to the regional governments, with the aim of granting them full autonomy in the regions of health care, education, and other social initiatives. During Aznar’s term, Spain became a part of European Union, and participated in military operations in the former Yugoslavia. President Aznar and the PP were reelected in March 2000. After the terrorist attacks on the U.S. on September 11, 2001, President Aznar joined forces with the U.S. to combat terrorism. Spain joined the war against the Taliban in Afghanistan, and supported U.S. intervention in Iraq.

The elections of March 2004 resulted into a new political change in Spain, as the PSOE won the election under its leader, Jose Luis Rodriguez Zapatero. The Spanish government under Zapatero withdrew Spanish forces from Iraq but has continued to support Iraqi reconstruction efforts. The Zapatero government has also supported coalition efforts in Afghanistan, including maintaining troop support for 2004 and 2005 elections and reconstruction efforts in Haiti, sending troops to UNIFIL in Lebanon, and cooperating on counterterrorism issues and many other issues of importance to the U.S.