Spain, as one of the largest eurozone economies, historically had a low amount of debt as government spending was largely controlled by tax revenue collected from the real estate boom. However, being such a large economy like so many other similarly large economies (such as Germany, France and U.S.A.), it has had to reduce its debt more aggressively given the trouble in surrounding, smaller economies.
Although challenged in the early stages, Spain has been able to decrease its deficit from 2009 to 2011 but could not overcome the subsequent “burst” of its housing market which greatly weakened its private banks. Upon this those banks had to seek the government bailouts to ensure lending continued and they did not become insolvent.
As further bailouts were being prepared the austerity measures that were so stringent to Greece, Ireland, and Portugal were not necessary as the conservative governments already put into action the reform required. Despite the expected challenges ahead, companies such as Capital Corp Merchant Banking are still willing to consider investment opportunities In Spain and look forward to working some more in this stunning country .