Optimism, and caution, as Spain attracts investment

"The root of the problem is that Spain is attempting to do two contradictory things: pull off an internal devaluation within the eurozone to bolster trade competitiveness, while ensuring that its debt burden remains sustainable," said Simon Tilford of the CER. "By depressing domestic demand and inflation, the former undermines the latter."

...While acknowledging the pickup in foreign direct investment, Mr Tilford still concludes that in Spain’s case, "overall business investment remains very depressed."