Lets face it. Spain has had a phoney economy since it joined the Euro which fueled the housing boom and Spain will continue to have a phoney economy as long as it remains in the Euro and Spain will only a proper functioning real economy once it drops out of the Euro and adopts the Peseta..
That’s not true at all. Spain had been steadily reducing her budget deficit and in 2005 actually produced a surplus. Same in 2006 and 2007 which was the result of a solid underlying economy.
However once the global banking crisis hit in 2007/08 which left Spain’s banks exposed to huge losses, the budget deficit went from a surplus to a large deficit. Spain’s GDP was growing at a healthy 4% a year up to 2007 and now it’s plummeted into negative growth.
There is still nothing fundamentally wrong with Spain’s economy. If you strip out the property market, which is where Spain’s biggest problems come from, essentially because they’re run by greedy and corrupt officials, their exports are still strong – despite the strength of the Euro.
All these charts disagree with you.