The Financial Crisis started in 2007 and is considered to be still present. It started by the liquidity drop in the US banking system. This resulted in the huge problems for many financial institutions. In order to prevent the total collapse of the financial system many governments decided to offer bailout plans or partially nationalize the banks and whole industries.

As a result the world saw an unprecedented downward trend in global financial markets, real estate prices which led to numerous evictions, mortgage foreclosures and prolonged vacancies of commercial and residential property. The next stage was when these had their consequences on regular businesses which had to start shedding jobs. This led to big unemployment, deflation and inflation as well as the slowing down of economic activity and fall in consumer wealth. It all started in the US but soon spread over the rest of the world as well. The current financial crisis has been compared by many to the last great recession following the Great Depression of the 1930s.

One of the long-term consequences of these events was the crisis that ensued in many sovereign European states. The worst hit nations were Greece, Italy, Portugal and Spain whose long run government deficit now was a huge burden to the economy.

The Spanish economy had seen steady economic growth in the years before the 2008-2009 financial crises. Nonetheless, there were evident fundamental problems in the economy which were already visible. Among those were the growing trade deficit, high inflation rate compared to the other European nations, the consequences of the Spanish real estate boom from the end of the 20^th century and the high prices of oil in the first decade of the new century.

With the beginning of the crisis in Car Hire Spain projection about GDP growth were slashed by half which represented stagnant GDP growth reflecting the growth in population. Then, in 2009 the IMF projected minus four percent growth. The public debt was getting out of control. Also, Spain saw the highest unemployment rates in decades reaching up to 20 percent at certain points.

However, thanks to the more conservative practices of the Spanish banks, timely measures of the Spanish government and help form the European institutions Spain managed to recover from the crisis by the beginning of 2010.