Paco_P said:
That's just wrong. Unemployment was not high in 2004. That was the peak of the massive immigration to Spain, and people were coming because jobs were easy to find. The lines at the immigration office in 2005 took days. In particular, there were lots of jobs in construction. Things did not begin to implode until more like 2008 when credit dried up and financial liquidity collapsed and the real estate speculation boom ended. The change to the euro caused a lot of problems that no one talks about and somehow don't show up well in official figures. A lot of money had to come out of the underground or be lost, and it went into real estate. The influx of capital from Northern Europe also contributed. The EU wasn't propping anything up - it was causing the problems.
(Aside: If you're from the US, it's important to keep in mind that the US counts unemployment figures differently than everyone else - a very rough rule of thumb is that to compare with European numbers, double the US number. Spain's terrible, horrible economy right now, on paper, looks slightly better than California's (to compare two economies/countries of similar size). )
Ok, we are headed off on a wild tangent.
But, I disagree with you.
The Spanish property bubble was one of the world's worst. Money was flowing from the EU into real estate projects - for which there was no foreseeable demand. Those 'construction' jobs were building a house of cards (sic).
And, we are talking about the timing of OP and whether or not anyone in Spain was paying attention. OP was in 2006, not 2004.
Even so, as
Wikipedia notes, "Spain continued the path of economic growth when the ruling party changed in 2004, keeping robust GDP growth during the first term of prime minister José Luis Rodríguez Zapatero, even though some
fundamental problems in the Spanish economy were already evident"
Nobody in Spain was apparently paying attention to the complete false economy/enormous bubble that was about to burst let alone OP.
Dave.