both politically and economically.
And while some of the historical points you mention are true, they were not as rosy color as some historians have made it to be. Allow me to ellaborate:
Islamic armies invaded the Southern 1/3 to 1/2 of the peninsula and installed a Caliphate under Islamic law. Between 711 and the early 1200s the southern third of Spain was under Muslim rule. The residents of this area either converted of became taxated by the new Muslim rulers. Coexistence was never peaceful except in some key cities that were centers for exchange and commerce like Toledo
(the "New York City" of the Middle Ages). There was a period of prosperity during that time in the Muslim regions because of the influx of arts and culture they brought from the other side of the Mediterranean
(as Islam invaded areas of the Eastern Mediterranean they got to transfer a great deal of classic greco-roman culture back to Western Europe).While Christians and Jews were tolerated under the Muslim areas, they were heavily taxated, and had to subject to the Muslim laws for the
"Dihim." Still, about half of population of Southern Spain remained Christian under Muslim rule (These were called the "Mozarabs," basically Christians living under the realm of the Muslim caliphate). Mozarabs were the cultural bridge between both cultures, being able to translate much of the classic works back from Arabic to Latin, then pass them to the rest of Western Europe. In the meantime, the Christian kingdoms of the Northern half of Spain kept their campaign of reconquest of the peninsula, a campaign that was relentless. Tension was always part of the relationship, and except for trading areas and cultural centers, coexistence between the cultures was always part of a state of war.
The first one and 1/2 centuries of Muslim rule were quite a prosperous time... but that ended with the Almoravids, a fundamentalist movement (more or less similar to the Taliban) that decided to end up all that epicurean lifestyle and sinning the Caliphs were enjoying in Southern Spain. They invaded back from Northern Africa and took over the Muslim areas of Southern Spain with a vengeance, now with a fundie zeal. They decided to try and take over the Christian Kingdoms as well, as they were engaged in this war since 711. Yet they kept slowly losing key battle after key battle until most of the Iberian Peninsula was retaken by the Christian kingdoms by the mid 1200s.
The only place that remained Muslim for the next two centuries was the city of Granada and its surroundings, until its fall in 1492, when it was sieged and retaken by Ferdinand and Isabella.
There is an awesome history book about the relationships between Islam and Christianity that I read recently that I strongly recommend:
The Cross and the Crescent, by Richard FletcherIt explains very well the relationship of the two religions through history, sheds light on some myths, and brings new info to how this ages-long clash of civilization has evolved over time.