# Part 07: Economy and Finance
**Articles: 128-136**

## Core Idea
Establishes the framework for Spain's economic system, emphasizing a market economy with social principles, public finance discipline, and equitable wealth distribution.

## Frameworks Introduced
- **Social Market Economy**: Wealth in its various forms and ownership are subject to the general interest
- **Public Finance**: Taxes are established by law; public spending and credit are subject to annual budget

## Key Concepts
- **Economic System**: Based on free enterprise within market economy (Art. 38)
- **Public Wealth**: Public wealth in its various forms is subject to law (Art. 128.1)
- **Private Property**: Recognized with social function (Art. 33, 128.1)
- **Budget Principle**: Annual budget law (Art. 134)
- **Taxation**: Taxes must be established by law (Art. 133)
- **Public Credit**: State may incur debt only by law (Art. 135)
- **Wealth Distribution**: Public powers may plan economic activity to meet collective needs, balance regional development, and ensure fair wealth distribution (Art. 131)

## Mental Models
- Use **social market economy** — market freedom combined with social justice
- Think of **budget as constitutional document** — annual law that determines state priorities

## Anti-patterns
- **Unplanned economy**: State cannot arbitrarily intervene in economic life
- **Deficit spending without limit**: Public debt must respect constitutional and legal limits

## Key Takeaways
1. Spain has a market economy with social principles
2. Wealth has a social function alongside private ownership
3. Public finance requires annual budget approval
4. Taxes and public credit require legal authorization
5. State can plan economy for general interest

## Connects To
- **Part 01**: Economic and social rights guide economic policy
- **Part 03**: Cortes approve budget and taxation laws