During the past 13 years of uninterrupted growth, Spain has undergone a spectacular transformation. A backward economy lumbered with high unemployment, high inflation and crippling public deficits has given way to a modern, dynamic and confident nation.

In the first quarter of 2007, growth accelerated to an annualised rate of 4.1 per cent, surpassing many forecasts. Incomes are converging with those of northern Europe. So is unemployment, which has fallen from 20 per cent in the mid-1990s to 8 per cent today. Some 600,000 jobs are being created every year. Within the European Union, only Germany’s much larger economy creates more jobs.