Editing Economy of Spain (section)

====Euro debt crisis, 2010-2012====
{{Main|European debt crisis}}
[[File:Spain bond rates.webp|thumb|300px|Spain bond rates during the [[2008–2014 Spanish financial crisis]]
{{legend-line|#F1BF00 solid 3px|20 year bond}}
{{legend-line|#AA151B solid 3px|10 year bond}}
{{legend-line|#00A2FF solid 3px|2 year bond}}
{{legend-line|#EE220C solid 3px|3 month bond}}
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[[File:Eurozone.svg|thumb|Spain is part of a monetary union, the [[eurozone]] (dark blue), and the [[European single market]]. ]]
In the first weeks of 2010, renewed anxiety about excessive debt in some EU countries and, more generally, about the health of the euro spread from Ireland and Greece to Portugal, and to a lesser extent Spain. Many economists recommended a battery of policies to control the surging public debt caused by the recessionary collapse of tax revenues, combining drastic austerity measures with higher taxes. Some German policymakers went as far as to say that bailouts should include harsh penalties to EU aid recipients, such as Greece.<ref>{{in lang|en}} {{Citation |url=http://www.businessweek.com/news/2010-02-15/merkel-economy-adviser-says-greece-bailout-should-bring-penalty.html |access-date=15 February 2010 |title=Merkel Economy Adviser Says Greece Bailout Should Bring Penalty |url-status=dead |archive-url=https://web.archive.org/web/20100219060101/http://www.businessweek.com/news/2010-02-15/merkel-economy-adviser-says-greece-bailout-should-bring-penalty.html |archive-date=19 February 2010}}</ref> The Spanish government budget was in surplus in the years immediately before the [[Great Recession]], and its debt was not considered excessive.

At the beginning of 2010, Spain's public debt as a percentage of GDP was still less than those of Britain, France or Germany. However, commentators pointed out that Spain's recovery was fragile, that the public debt was growing quickly, troubled regional banks may need large bailouts, growth prospects were poor and therefore limiting revenue, and that the central government had limited control over the spending of the regional governments. Under the structure of shared governmental responsibilities that has evolved since 1975, much responsibility for spending had been given back to the regions. The central government found itself in the position of trying to gain support for unpopular spending cuts from the recalcitrant regional governments.<ref>{{cite news|last=Ross |first=Emma |url=https://www.bloomberg.com/apps/news?pid=20601109&sid=anieTsqbl2DM&pos=13 |title=Zapatero's Bid to Avoid Greek Fate Hobbled by Regions|publisher=Bloomberg.com |date=18 March 2010 |access-date=20 November 2012}}</ref> In May 2010, the government announced further austerity measures, consolidating the ambitious plans announced in January.<ref>[https://news.yahoo.com/s/afp/20100523/ts_afp/financeeconomyspainpoliticsstrike_20100523202827] {{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref>

As of September 2011, Spanish banks held a record high of €142 billion of Spanish national bonds. Till Q2 2012, Spanish banks were allowed to report real estate related assets in higher non-market price by regulators. Investors who bought into such banks must be aware. Spanish houses cannot be sold at land book value after being vacant over a period of years.{{citation needed|date=March 2022}}