Eurostat data on per-capita income in the EU confirm the depth of the crisis for Spain. Per capita income in the country fell by 1% last year to 99% of the average total euro zone per capita income.
Between 2003 and 2007, Spain reached its highest level of per-capital wealth in recent history, but this earning power has declined rapidly since then. The indicator that tracks per capital income suggests that the Spanish economy was built on a weak foundation of market booms and real estate speculation.
Now that the real estate bubble has burst, several Spanish weaknesses manifest themselves: low productivity, education shortcomings and the need to change to the country's production model, which has stagnated recently, in part due to the crisis.
