Spain had been using large import barriers to keep out international business

Solid banking system

The Spanish property market grew by 16%

Spanish property has long been favored by second home owners from all reaches of the world

The crisis is an opportunity to redefine the tourism sector

Luxury real estate market is now looking reasonably healthy

Provides insurance against political risk for both domestic and foreign firms

Employs tax-sparing arrangements and foreign tax credits to prevent double taxation of corporate profits earned abroad

Large number of immigrants from developing countries entering Spain

Tuition for foreign students the same as for nationals

High unemployment and enormous inventory of new houses will slowdown any recovery in the Spanish market

Enormous inventory of newly built housing

Recovery will come to Spain later than the rest of Europe

Does not provide support for outflows of portfolio investment

Political risk insurance also given to inefficient, import-substituting projects

Large share of aid to less poor and relatively undemocratic governments

High tariffs on agricultural products

Political risk insurance also given to inefficient, import-substituting projects

High fishing subsidies

Low gas taxes