Strong public finances Modern and diversified economy with stable political system Membership of the European Economic and Monetary Union (EMU) High level of private sector indebtedness Unbalanced, labor-intensive growth with low productivity increases Economic growth prospects weakened by relative deterioration in export competitiveness The ratings on the Kingdom of Spain reflect its strong fiscal position and modern and relatively diversified economy. The stable political environment should facilitate an acceleration in the government's program of structural reforms in order to maintain the strength of the public finances and support the economy's growth prospects. Public finances have in recent years been supported by expenditure control, declining interest payments, and healthy revenues, resulting in a surplus of 2.2% of GDP in 2007. This,
