Spain's public debt is not so bad compared to it's other neighbors - France, Portugal and Morocco all have almost twice as much. Spain's problem is mainly with the private debt...

Anyway, as you mentioned Eurozone, PIGS countries (Portugal-Ireland-Greece-Spain) are obviously a major burden with their problems.

But what will happen will depend on what actions will be taken. Personally I'm quite pessimistic about Europe.

Here's a detailed analysis of the situation from Roubini Global Economics Monitor http://www.rgemonitor.com/euro-monitor/255424/do_brics_and_g...