THE new centre right Partido Popular government has little choice but to introduce wide ranging cuts but, there are reasons to be cheerful.
We have read reports over the past week of further growth expected in the tourist industry, especially in the Balearics this year and it appears that the property market has bottomed out and is now back on the road to recovery.
A growing number of experts believe that the Spanish property market is showing signs of recovery following the well documented economic crash which has plagued numerous global property markets.
They also predict that a greater number of lifestyle buyers will enter the second home market this year with very few looking for rental returns with the average age of the property buyer rising up to 55 years-old, signaling that lifestyle attributes will be of greater importance in 2012.
We are also seeing some serious private investment in the Balearics from luxury hotels to a possible polo farm, theme park and even an F1 track.
Granted, such projects will not be built over night, but they are long term investment prospects which will create jobs and inject much needed cash into the local economy.
And all this with the Pound hitting record highs and expected to continue giving the Euro a run for its money throughout the course of this year, so things are not that bad.