THE WSJ deconstructs Spain's economy, which is not in such a good shape as leading indicators are, well, indicating:

Spain's economy is booming. So, more dramatically, is its housing market, with prices up 180% in the past decade. Rising wages and low interest rates fuel the housing demands of the upwardly mobile in this Iberian tiger.

Here's a reality check: All fiestas must end, or at least wind down. In this case, the thriving housing market covers up structural shortcomings in the economy to which the center-left government has paid scant attention.

(Subscription required, but you should be able to read it the next seven day at this link)

Spain's economy is almost completely revolving around an overheated, or rather a burning hot, housing market. And when interest rates go up it's gonna be an ugly thing unless Zapatero's government takes the right measures, which doesn't seem it's going to. Too busy with purely political moves, thinking they can ride the economic vawe forever.