Spain's Mess Explained

Prof Paul Krugman has an excellent summary of Spain's woes. He does not sound too optimistic "Spain now seems doomed to suffer years of grinding deflation and high unemployment" but affirms the Euro is here to stay "Am I calling, then, for breakup of the euro. No: the costs of undoing the thing would be immense and hugely disruptive. I think Europe is now stuck with this creation, and needs to move as quickly as possible toward the kind of fiscal and labor market integration that would make it more workable.

But oh, what a mess."

Spain - "this is going to be ugly"

Paul Krugman is not very optimisitic for Europe's prospects, notably those of Spain.
At least he does not think "exiting the Euro is feasible".