The Spanish government on Friday lowered its 2015 forecasts for unemployment and public debt, bolstering its claims of a surging economic recovery months ahead of a general election.
Spanish Prime Minister Mariano Rajoy welcomed on Wednesday what he said was a "positive" change in tone from Greece, which has pledged to make "credible" reforms to obtain a new bailout deal.
There are intriguing political parallels between the two nations ahead of a year-end general election in Spain, where the ruling conservatives are pointing to Syriza's difficulties to discredit its
Spanish ally Podemos.
The leader of Spain's leftist Podemos party on Sunday hailed results from Greece's referendum showing voters decisively rejecting creditors' bailout terms as a victory for democracy.
Spain is still spending much more than it earns, racking up the second-highest deficit in the EU as a percentage of GDP last year, according to a report on Tuesday.
A new Greek bailout deal is possible before an end-April deadline but it will not come before Easter, EU president Donald Tusk said on Tuesday during a news conference with Spanish Prime Minister Mariano Rajoy in Madrid.
Spain raised the pressure on Greece on Monday to "honour its commitments" to its European partners to end its debt crisis and prevent its dropping out of the eurozone.
EU Commission chief Jean-Claude Juncker said Wednesday there was no "diabolical plan" by Spain and Portugal to topple Greece's new hard-left government after Prime Minister Alexis Tsipras accused the countries of undermining debt talks with Brussels.
Spain warned Friday it will want back €26 billion ($39 billion) it lent to Greece in the financial crisis, as new left-wing leaders in Athens seek to renegotiate the country's debts.
Spain can now expect growth of 1.7 percent in 2015, down from the 2.1 percent originally forecast by the European Commission, while unemployment and public debt levels are set to remain stubbornly high until at least 2017, Brussels said on Tuesday.
Spain's public debt has topped €1 trillion ($1.3 trillion) for the first time, the central bank announced on Thursday, despite years of government-imposed austerity.
Fitch Ratings upgraded Spain's sovereign credit on Friday, capping a string of good news for a nation still recovering from a job-wrecking, double-dip recession.
Debt owed by Spanish banks to the European Central Bank fell again in November to its lowest level since February 2012, Bank of Spain data showed on Friday.
Spain announced on Tuesday it had completed its programme aimed at raising €121 billion ($164 billion) from the debt markets to finance the state in 2013.
Fitch Ratings said Friday it was upgrading the outlook on Spain's investment-grade "BBB" rating to "stable" thanks to progress in reforms and improved export performance.
Spain's public debt, rising unchecked for the past five years of economic crisis, will peak at just over 101 percent of output in 2015, the government said on Thursday.
The net debt owed by Spanish banks to the European Central Bank fell in September to the lowest level for 18 months, data from the Bank of Spain showed on Monday.
Spain's public debt will rise next year to 99.8 percent of output after hitting 94.2 percent at the end of this year, higher than previously forecast, according to details of the government's 2014 budget published on Monday.
Spain's accumulated public debt soared to a record high at the end of June, the Bank of Spain said Friday, shattering government targets despite a relentless austerity squeeze.
Moody's credit rating agency has downgraded three nationalised Spanish banking groups, sending their debt deeper into junk bond territory on fears that private investors may get burned in case of trouble.
The recent tax authority investigation of Barcelona's Lionel Messi has put the spotlight on Spanish football's fiscal affairs and raised questions over the ability of many clubs, including first division heavyweights, to pay their debts.
Spain's public debt shot to a record high in the first quarter of this year, the Bank of Spain said on Friday, despite Prime Minister Mariano Rajoy's hotly-protested austerity squeeze.
The US credit ratings agency Standard & Poor's has predicted a weak economic recovery for Spain in 2014 but is sounding the alarm on the country's high foreign debt levels.
