At first PSOE had to deal with economic crisis and getting Spain back into European community. Modernisation of Spain economically, industrially, and socially.
ECONOMIC: transition from a corporate capitalist dictatorship to a market economy.
SOCIAL: services such as health, education, pensions and social benefits were made universal. Also the outreach of Spain to other countries, like the entry into the EEC.
1993 narrow victory- in a climate of political and press tension
1996 lost to PP