Spain has hardly noticed the market turmoil. The economy is set to grow by about 4 per cent this year compared with 2.5 per cent for the eurozone, businesses are expanding and hiring and bank credit grew by more than 23 per cent in the year to June, according to the Bank of Spain.

Miguel Angel Fernández Ordóñez, the central bank governor, reassured members of parliamentthis week that Spain's financial system was rock solid.