Luis de Guindos, MInister for the Economy and Competitiveness, believes that some segments of the Spanish housing market have bottomed out, in line with the wider economy.

“Some segments have touched bottom,” he said, referring to house prices.

De Guindos made his comments to a parliamentary commission, and also pointed out that the crisis was partly caused by too much easy credit offered to sectors with low value added, like construction.

He also explained that private debt that was “way above” the European average, and largely concentrated in the real estate sector, was the other side of the coin of the property bubble that Spain went through, which inflated house price “exponentially.”

He then repeated the official canard that Spanish house prices have fallen 30pc since the peak, when everyone in the business knows prices are down 50pc or more.

The failure of the official figures to recognise the true extent of price falls is bad for Spain because it makes international investors think that prices have a lot further to fall, so they hold back. Local investors, who don’t rely on official figures, are better informed.