The hangover just won’t lift. Spain is still paying for the collapse of its property boom even as France, Germany and Italy return to growth. On Thursday, it joined the UK in Europe’s hall of shame after its economy contracted for a sixth consecutive quarter, in its case by 0.3 per cent, or 4 per cent year-on-year. Still, the decline was not as steep as the previous quarter’s 1.1 per cent slide, nor as bad as the Bank of Spain had feared.

A paseo down any calle mayor in Spain should explain the less dramatic fall. The government has spent the equivalent of 2.3 per cent of gross domestic product on infrastructure, pushing its budget deficit towards 10 per cent of GDP – among the highest in Europe. Madrid hopes to recoup some of its largesse through higher taxes. But the tax base has shrunk.