I am sorry to those who are talking about the doomsday: Spain will survive as has survived for hundred of years or will not survive because everything has a date. But is a pity 90% of people here in this blog speak about Spain as if Spain were just the cost: you can not speak about Spain, sorry.

Robert Frankie, Macao Taipa, Macao

Hardly unexpected, when the world sees bulldozers flattening the homes of Brits and others who have moved to Spain for their retirement, only to be told they have infringed some dubious local planning law. Spanish property? you must be having a laugh, serves them right, they'll just have to go back to growing root vegetables.

Chris , Holmfirth, Yorkshire

Spain is an artificial construct and we need to split up Spain into several different countries: Republic of Andalucia
Republic of Valencia
Republic of Catalonia
Republic of Castilla-La Mancha (including Madrid)
Republic of Euskadi
Republic of Galicia/Asturias
I make that 6 separate countries. Canarias too wants independence, so let's make that 7 countries. Then we no longer will have a constant conflict and distrust between the regions, they can determine their own policies on everything, without the need for centralization from Madrid. I think in the long term it's very beneficial for Spain to be 5 or 6 different countries each with their own individual agendas. I know that a lot of people within Spain support this.

Felipe, Madrid, Spain

Welcome to Spain, a soon-to-be Banana Republic on the fringe of Europe. Except, wait, how can they even grow bananas without water? With ridiculously rising prices, fewer tourists, property investment confidence ruined, swarms of unskilled immigrants everywhere, the family-oriented social structure breaking down, Catholic Church in crisis, and even the viability of basic agriculture now seriously threatened by climate change, the first EU country to be forced to exit the EU can only be one name - SPAIN. Sad to say, but as someone who formerly enjoyed many fun times under the Spanish sun, this is a once fine country going down the tubes fast. If you have property there, you're well-advised to sell up fast before things go from bad to worse.

Mike, Canterbury, UK

Zero sympathy for the Spaniards because they were only able to improve their quality of life and drag themselves out of essentially an agricultural peasant economy thanks to the billions of euros generously injected into their country by affluent northern Europeans (Brits, Germans, Dutch in particular), then they shot themselves in the foot by becoming overgreedy and launching unscrupulous developments, forcing up prices artificially which led to this bubble. Now they've come back to reality with a massive bump and realised that their economy is based on a house of cards. Well, in this high-stakes game of cards, they've finally lost their bankroll and very soon their shirts too. The only silver lining here is that inevitable meltdown of the Spanish economy will make Spain much cheaper once again for tourists within a few years from now. Pesetas, anyone? Viva la revolution!

Eric, Puerto Banus, Spain

Spain is basically a 2nd World country pretending, for the past 15 years ago, that it's a 1st World international-level economy. The decades wasted in the stagnation of the Franco dictatorship mean that Spain will always remain a long way behind in development. Yes, Spain will have to drop out of the Eurozone before long. Corruption, nepotism, xenophobia have always been rife in what remains a very conservative society. Spain has a unique character making it unlike most other countries in the EU. Spain, Portugal, Greece, along with the former Eastern Bloc countries, don't really belong in the EU because they truly dilute the meaning of what the EU is supposed to be about - a grouping of powerful, developed, stable countries. You'll be struck by how rural, poor and backward the majority of inland Spain is - but most people only see the shiny cities/resorts. Lack of water will cause huge problems in coming years. The southern half will literally become a desert within 20 years, a tragedy

JT, New York City, USA

No one is targeting Spain but it is a fact that a substantial chunk of money has been poured into Spain by other EU countries mainly paid for by Germany, UK and Holland. On top of that, the majority of spanish property purchasers are the British and Germans. My friend who works as an estate agent in Spain tells me that whatever meagre buying or inquiries there currently is now is 100% British. He has not had any German buyers or even a single inquiry from them as they are now buying mainly in Bulgaria. Whilst on a holiday to Greek Cyprus (the south), I've noticed that there are still many British people purchasing property there. A woman friend has recently
bought 2 apartments in Cyprus and emigrated from UK so the British are still buying, though in lesser numbers, but still buying overseas but just not buying in Spain.

james, london,

Was Euro a mistake? yes
Would accept Catalonia and Euskadi go back to the old currency? no, it will likely be the end of Spain as a state. I think Italy will have similar issues.

Regarding the british press. Could you please move the island some thousand miles to the west and leave Europe alone? thanks

Enric, Barcelona, Spain

* If you think things in Spain are bad, wait til it really bites here - UK housing (and ancilliary services) accounts for c13% of GDP, which is now higher than in the US.

* Looking at median UK house prices to disposable household income over the past 50 years, UK prices are now 160% relative to their historical average compared with 105% in the US. Recall also that US prices have fallen some 15% over the past 18 months vs still flat YoY in the UK.

* Also bear in mind that house prices in Spain ended Mar +4% YoY vs +1% YoY in the UK, which registered the 2nd greatest monthly decline since the early 90s; Spanish houses on the coast are only 20% of the total in the country and only 25% have been built since the 1990s, ie three-quarters are still pre-90s and in need of replacement.

* 80% of new UK mortgages this decade have been for BTL, which doesn't exist in Spain. Spanish govt has a budget surplus to play with which UK doesn't. Don't throw stones if you live in glasshouses!

Bruce, London, UK

The Spanish cannot eascape the credit crunch which has come at an unfortunatew time when the property boom is boiling over. The British who have retired to Spain find their pensions are worth 10% less per month and those who have borrowed in the UK to finance a property in Spain find their expenses have like wise risen by 10%.
The house of cards is about to topple as builders go out of business. By November I would not seen prices at 40% of the value they are today
Will this be a good time to leave your brains at the airport and buy?

V Cooper, Yeovil, UK

Paco Martin, Valencia, Spain you are right about leaving their brains at the airport, but the land grab and planning is the most corrupt thing ever to happen...and the Juanta couldn´t organise a cafe con leche...Did you know that all work stopped in Andalucia last week because all the shops had run out of brown envelopes!!!! The whole system stinks, and the more town halls face up to the years of back handers then poeple may have the confidence to buy again....thats if the banks give out any money....7 IVA anyone is the other joke, of course, on houses, and what about 18% capital gains tax on your property, nice...not very pleasing.....and who is actually building these houses without plannning then, aliens, no, your friendly spanish builder Jose, juan....show them the money....

Tony, Andalucia...,

The United State and Europe have had similar economic problems during the past 8 years. Both have had unsustainable expansions of credit that have led to high real estate values. Now both have a credit liquidity problem because of the over extension of credit.
Now look at the two solutions. The US has loosened money supply to fight the recession while the CBE . ( European Central Bank ) have maintained tight money to fight inflation. The US will come out of its recession this fall. It will face inflationary times but the economy will be doing well. What will be happening in Europe?
How about slow growth due to a high Euro value but some inflation due to commodity prices and higher prices from China. Pick your poison.....

Peter, Warren, New Jersey , USA

Some answers to some of the comments by Britons on Spain:

- Regarding history and the way Spain became an alleged "backwater" in the XVII century (CS from Norwick): then how could you explain that Spain was able to maintain a world Empire till the XIX century against the depredatations of the British, and the Dutch?. For comparison, the peak of the British Empire lasted from the post- Napoleonic Era (1815) to the Second World War (1945) whilst Spain kept its global reach from 1492 to the mid XIX century. Also for your information, the attempts by England to conquer all of Hispanic America failed miserably in the XVII and XVIIIcenturies ( remember the Counter Armadas and the expeditions by Raleigh and others).

-As to the EU funding the Spanish boom, that is relative. Actually, less than 1% of our GDP comes from EU transfers. By the same token, should we say that the British economic recovery - or the German or the French to that matter- was due to the Marshall Plan?

Luis Montes, Madrid, Spain

Perhaps we are so obsessed with Spain's economic problems because we don't want to look at our own. Mortgage and credit card debt here are completely out of control.

If you think Spain has it bad wait until it really bites in Ireland and the UK.

Trevor, Naas, Ireland

The whole of Europe is witnessing econcomic slowdown and lower investment levels. Why the British press choose to focus on Spain and continue to spread their negativity (which certainly isn´t helping the situation) I have no idea.

Concerned Brit in Spain.

Shug, Madrid,

I am amazed at the arrogance of some people living inthe UK.
The reality is that Spanish people have moved into the buying of houses - The culture of living with parents even after marriage has moved on especially in the villages. As such the building boom on the costas was not the catalyst that made the economy grow. Also the so called land grab and unofficial building land situation was of many peoples own making, in that they buit in an area such as a national park (things you would not dream of in your own country - so why do it here?)
The reality is that people left their brains behind on the airport tarmac when travelling to Spain - The naive writings in this colume show how really daft some people are.The only seemingly important thing to British people seems to be the value of their house - how dull, and daft can you get. The once great nation is seemigly inhabited by estate agents and people in financial services - It is sad.
Regards Paco
Valencia

Paco Martin, Valencia, Spain

The problems in the property market are largely Spain's own fault.

They have relied heavily on ex-pat (mostly English) property buyers. Unfortunately many have now been put off by

A) The Spanish government does literally nothing about individual Spanish builders ripping off British buyers. Once you have given money there is little come back to a Spanish builder

B)The Spanish government does nothing about the SPanish council's policy of 'reclaiming' people's back gardens for road developments or some 200 year old covenant that has just been discovered


Hard cheese Spain! The Brits money bankrolled your economy for years, you did nothing to help them out when some problems arose and you are going to pay the penalty. British people are now just too scared to buy in Spain!

Paul, London, London

The boom was funded by the EU and ex-pat home buyers. Those, temporary, primers are now finished and Spain will have to live on its own devices. The same thing happened in the sixteenth and seventeenth centuries when Spain failed to profit from its wealth in the new world and became a European backwater.
The Spanish costas are filled with endless messes of concrete, and the lower middle and working classes to which those things appealed have now had their fingers burnt.
The rich will find their nooks, and Spain will continue to have appeal, but the structural model which caused the boom is now spent and, as with the whole world, a new economic paradigm will be needed. I doubt it will be found though, before 'events' overwhelm us all.

CS, Norwich, UK

I think Spain's problems come from the high rate of growth in the past years. They are suffering a backlash now - just as we are in the UK. French(East) and German house prices have risen more slowly in the past and , perhaps, this is why they don't have this problem.
I am very much pro the European monetary Union. Fluctuating exchange rates make it difficult for companies to plan future import/exports and only encourage financial speculation between currencies.
We need a slower but steady and stable growth and not the boom and bust cycles of the past.
Europe has a lot of know-how in energy-saving/ alternative energy technologies. This is where future growth should be ( though not in Biofuels!). These industries need to be actively encouraged and supported through Governments.

Kim Domnick, Torquay, UK

Spain will probably be lucky to grow at all this year. The bubble in property there makes ours here look like a two-bit chain mail scheme. Construction in Spain is like 20% of GDP there, compared with 7% here at our peak. Once construction starts falling 25% per year like here, it will be stripping off 4-5% of GDP compared with only 1-2% here, only Spain wont have it's exports to fall back like we have here on because of the grossly overpriced euro... by next year don't be surprised to see minus 2-4% growth in GDP.

It will probably take 5 years for the Spanish economy to recover to it's 2007-8 peak... like early 90s Finland/Sweden.

Zach, Newbury, NH

Living here in Spain and being an employee in one of the big Spanish banks, I can assure that I have never heard on tv, press or seen any specific research that hints that Spain could be leaving the Euro. That's gratuitous anti Euro campaign that may be interesting for those countries who are not in the Eurozone, but once you are in, let me remind you that there's nothing to debate!

gguida, madrid, spain

Interesting idea; 1.7% - 1.9% GROWTH sensationalised as a recession and pre-cursor to the 'doomed' Euro! (yawn). As a resident in the Eurozone, it's not the Euro I worry about!

Lee, Paris, France

We are a small UK based Spanish Property Agent, and honestly feel that there are many many prospective purchasers in the UK, not investors, but 'end users' still wanting to buy either holiday homes or permanent homes. But, of course, the non stop 'bad press' that keeps on hitting the headlines, Valencia Land Grab Law, demolition of homes,has scared buyers off. It would greatly assist the Spanish housing market if the government declared an amnesty on illegal build and repealed the Land Grab Law. They are not helping themselves and its about time we had a positive med ia programme about the joys of living in Spain

MAUREEN TALBOT, sevenoaks, kent

If Spain is spending ist's budget surplus to get out of trouble, they cannot be in as much trouble as we in the UK are, because we have NO surplus to spend, or tax rebates to send out. We only have a government committed to taxing everyone more, including the lowest income earners and spending it all on more half baked ministerial initiatives

David Nammory, Liverpool,

Sadly, it was British and Irish property investors who spread the speculative disease to Spain, without which it would have remained confined to the 'Anglosphere'.

Paul, Coventry,