As from the second half of 2013, a scenario of incipient recovery progressively firmed in the Spanish economy, continuing into the opening months of 2014. Quarter-on-quarter GDP growth rates turned positive, though moderate, and modest job creation ensued. Both external and domestic factors came into play here. The economic policy decisions adopted by the euro area governments, progress in euro area governance and the ECB’s expansionary monetary policy have contributed to relaxing financial tensions, although they still remain high, and to sustaining the fragile recovery in the European economy. In turn, internally, significant headway has been made in restructuring the banking system and in correcting, to varying degrees, fiscal and competitiveness-based imbalances, among others. Joint action on these fronts has led to an easing of the adverse financing conditions and a pick-up in the confidence of both international investors and domestic households and firms, which have enabled the Spanish economy to overcome the extreme tensions of 2012 and exit the second recession of the crisis.