Abstract. In contemporary times, Spain offers a good example of a very compressed transition to post-industrial socioeconomic structures, passing from peripheral to core status within the European Union (EU) and the international economic order. The present article reviews developments and outcomes in Spain since 2000 by paying attention to the impact of the EU on Spain's welfare political economy. The adoption of EU recommendations in labour activation policies and the increase in female participation in the formal labour market are singled out as highly relevant for policy change. The explanatory account of welfare development focuses on continuity and change by considering the analytical constellation of ideas, interests and institutions.