1. There are around 6 million people currently unemployed. This drags down consumption and, at the same time, hampers companies growth. If businesses do not grow, they cannot hire new employees. Besides, having 25 percent of the labor force unemployed makes the state pay out a lot of money in subsidies, instead of spending it in other areas.
2. Banks only grant 30% of the loans that companies ask for. In 2006 this rate hit 45% so almost one in two loans was granted. According to the Bank of Spain, this low percentage means that either companies' do not get cash or they obtain it at worse conditions than they did eight years ago. Money needs to flow a little easier if the economy is to recover.
3. Public debt hit 90% of GDP and it is set to reach 100% by 2017. Consequently the state has to set aside millions of euros for paying interests.
4. Spanish GDP will shrink by 1.5% this year according to the Bank of Spain.
5. Spain has neither strong industrial hubs nor big firms. The country was so dependent on construction that once this sector shut down, the whole economy stopped. Spain needs to develop new businesses and invest in new economic sectors to overcome the recession. But it will be almost impossible without private or public investment.
So far, the only plan to ignite the economy has been Eurovegas, a casino project to be sited at Madrid. In other words more fiesta, sangría, and olé. Three leading businesses for a country that already masters those areas.