Spain is far from complying on deficit and State debt targets. It’s still surprising that out of a total amount of debt issued equivalent to 137% of GDP, there can be an official debt of 98%, thanks to a cut which, under the EU’s conditions themselves, is fully approved. This growing divergence has been there for years, particularly since the PP entered government in November 2011.
spain debt/GDP ratio
If we accept that the evolution of debt is a relevant factor in the explanation of the economic cycle, with the usual affirmation that the increase in debt explains the evolution in GDP, with a certain lag, then the credit cycle in Spain has been particularly intense.