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OCR: Since 1978, Spain has been a semi-federal, multiparty parliamentary monarchy. Main Political Issues Power struggles in the PSOE The power struggle between "renovadores" (reformers) and "guerristas" (followers of former deputy Prime Minister Alfonso Guerra) is threatening to tear apart Spain's ruling party, the PSOE, while preventing its leader, Felipe González, from selecting a successor. Having failed to win a working majority in June 1993, Gonzalez needs the support of Catalan nationalists to see through his economic reforms. Increasing regionalism Spain has 17 autonomous regions, all vying for greater funds or independence from Madrid. Many have bypassed central government to borrow their own funds on the international money markets and are close to breaching their legal debt limits, set at 25% of revenue. The PSOE's need for Catalan support in the "Cortes" will test the ability of the center to keep control. The Catalans are demanding ever greater autonomy and even a direct line to Brussels. Profile Spain has been dominated for the past 11 years by Felipe González's PSOE. After such a long period in power, however, the boundaries between party and state have become blurred. The "Cortes" (parliament) cannot check executive power, and political disputes are often left to the judiciary. Ideological issues no longer sharply divide the main parties, and they hold similar views on economic policy and EU membership. Though hardly on the Italian scale, political corruption - often related to the financing of parties - has been a problem, undermining voters' faith in Spain's political system.