(I) On 15 June 1977 the first free parliamentary elections for 41 years were held in Spain. (II) This was a decisive step on the road from dictatorship to democracy, and in July the new two-chamber parliament replaced the old "Cortes" of General Franco. (III) Indeed, the most crucial issue for the future of Spain was the separatist Basque terrorism in the north of the country. (IV) The first task of the new government and parliament was the drawing up of a new democratic constitution. (V) Also, in the meantime, a wide range of political and economic reforms were introduced, and in the 1980s Spain emerged as a major economic power in Europe.