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The Spanish economy has thrived on Northern Europeans buying holiday homes there. It started in the 70's Spain had a weak currency, labor was cheap, and so were living expenses. After Euro entrance, living expenses are pretty much the same as in Northern Europe. House prices in Euro terms followed initaly, they were spiking, and construction was ongoing. Middle agers sold their houses, bought an apartment and invested the difference in a holiday home in the south. Kept the economy going in Spain. It was a good investment as long as new buyers entered. They don't any longer, cause living in Spain is no longer cheap, and house prices are depreciating, there is no new housing construction= mass unemployment= increase in crime, and less people want to have a home there. Spanish banks lended lots of money to developers who now can't sell. Bad, bad, bad spiral!