Hard slog to reach sunlit uplands

Article forms the lead and overview article to the FT: Special Report 'Spain 2011'. Victor Mallet finds plenty of people defending Spain’s economic performance during the global financial crisis so far but they all agree there will be a tough few years ahead.

Politically, the defeat of the Socialists in regional and local elections on 22 May 2011 was so comprehensive that the rightwing Popular party is the strong favourite to win the general election that must be held in 2012.

Other articles in the FT: Special report include:

+ Banking system: Regional savings institutions consolidate
The ‘cajas’ network has been at the forefront of reform

+ Economy: Country takes pains to avoid a bail-out
Most urgent are deficit reduction and reform of the labour market

+ Tourism: Food, festivals and history to replace sun, sea and sand. The industry has to adapt to a drop in demand for bulk beach bookings and focus on what makes Spain a unique destination.

+ Property: Few signs of respite in a long chain of misery
Miles Johnson reports on efforts to promote real estate in a cold climate

+ Education: Young failed by system in need of structural adjustment. Miles Johnson reports on the frustration of graduates without jobs.

+ Food: Cuisine is given its due by world critics and diners
El Bulli restaurant has revolutionised the field, says Victor Mallet.

+ The ties that bind Catalonia. Secessionists tend to ignore Catalonia’s economic links to the rest of the country, writes Pankaj Ghemawat.