You would be forgiven for thinking there are more troubled countries that could be targeted by speculation. Italy has a 130% debt-to-GDP ratio, is still basically in recession, and has 50% public spending to GDP. Spain is approaching 100% debt, 44% public spending, and it looks like it's getting worse. Then there is Portugal, Cyprus and so on. However, if Greece goes in full default, the Euro will likely get battered and all these positions will potentially unravel, including the Irish one.
It is. Spain is scheduled to elect the local Syriza equivalent in November.
Spain lacks a cultural framework that would make the population want market based reforms, as there is so little trust in institutions, employers and employees. Its labor market is not bad because it's impossible to find productive Spaniards, but because productivity, both at the employee and the firm level, is punished.
Podemos is coming, and it's not going to be good for the country. But the alternatives are pretty bleak. Fortunately for Spaniards, a Greece-like catastrophe in Spain would be the death knell of the Eurozone, so the troika will probably bend to Podemos demands, as far as spending goes, as long as some market reforms are done along with said spending. Spain's one way out of this mess is growth.
The austerity has largely been targeted at vulnerable people who don't actually cost very much in total.
