• Sees uptick in household demand in recent months
• Absorbtion of excess capacity in residential housing needed as soon as possible
• Crisis shows weakness of economic governanace in euro zone
• Vital austerity measures met
• Signs of recovery in Spanish economy still very weak
• Spanish fiscal consolidation should be accompanied by structural measures
• Banking system has solid base, although bad loan provisions will continue to dent results
• Spain banking system still excessively exposed to real estate, construction
• Banking restructuring is almost mapped out
• Banking sector stress test shows sector is sufficiently capitalised
• Any failed bank merger plans will activate FROB mechanism by end June
• Bank of Spain to publish bank stress tests
• Banks restructure, pension and labour reform must be completed before summer