Even though financing costs have become more manageable, regional and national debt in Spain continues to grow. It is 98.4% of the nation's GDP right now and has passed a trillion euros for the first time ever. Debt is the number one problem for the Spanish economy, and it will continue to prevent a full and speedy recovery.
The problem is not only figuring out how to pay the debt, but also figuring out how to keep it from growing larger. At the current rate, the national and regional governments need to cut back even more. A core reform plan is pending, and if it goes through it could make running Spanish governments a lot cheaper.
Also, why did Finance raise the debt ceiling for regional governments, especially when they keep opening up public companies? Probably because of election politics. As long as this kind of politics prevails, the budget will not balance.