Spain failed to resume in many of its partners in the euro area and remains mired in recession, the central bank said Friday that fears about the future of public finances depth.The accumulated debt of countries and deficit burdens, coupled with those of Portugal and Greece, putting European stock markets suffered heavy pressure and resulting decline in value of the euro against the dollar.The Spanish stock market plunged 5.6 percent Thursday and down from 1.38 percent in mid-morning on Friday.The central bank said that the Spanish economy is in recession at the end of 2008, contracted 0.1 percent in the fourth quarter and declined 3.6 percent in 2009 as a whole.Although the pace of decline eased last year, Spain has nonetheless been able to join Britain, France, Germany, Netherlands and several other members of the euro area to shake off the recession.The country’s Socialist government, which says that the worst of the crisis is over, plans a return to growth in the seco nd half of 2010, although a contraction of 0.3 per cent is forecast for the entire year.Spain has been grappling with a collapse of its real estate market in 2008 after a decade of this frenetic activity.House prices have fallen 12 percent since then, according to the central bank, eroding consumer spending is critical that homeowners cut borrowing based on the value of their homes.Spain last Friday announced plans aimed at reducing its public deficit, to limit the European Union by 3.0 per cent of total production in 2013, after the deficit mushroomed to 11.4 percent last year.The debt is expected to increase from 55.2 per cent of GDP in 2009 to 74.3 percent in 2012, also well above the limit of 60 of Europe percent.The debt burden and deficit have caused concern among investors in depth and have driven up the cost of government borrowing on the bond market.Adding to the pressure has been speculation that the international rating agency, either Fitch or Moody’s could lower its outlook on Spain.A third agency, Standard and Poor’s, took such a decision in December.Spanish Prime Minister Jose Luis Rodriguez Zapatero defended the health of the economy of his country during a visit to Washington Thursday.“This is not an easy moment, there are fundamental economic challenges of great magnitude for Spain and other countries” in Europe, the Spanish leader told reporters.He said that criticism of the economy of Spain was from countries outside the euro area. These declarations have an effect on the market, “he said,” but the fundamentals of the economy of Spain are healthy. “Spain itself, got a boost on Thursday from the head of the Eurogroup of finance ministers, Jean-Claude Juncker of Luxembourg, who insisted that neither Portugal nor Spain was a threat to stability eurzone.“They do not pose a risk,” Luxembourg Prime Minister Juncker told reporters.Portuguese Finance Minister Fernando Teixeira dos Santos also stressed that his country has “nothing to do with Greece, which faces severe budget problems, and attacked investors for his country as” prey “.But the EU “Economic and Monetary Affairs, Joaquin Almunia mentioned Spain, Portugal and Greece in the same breath, on Wednesday, saying they” share the same problems, “irritating Lisbon and Madrid.European Central Bank chief Jean-Claude Trichet said Thursday that the high deficit and debt in some countries has been to impose a charge “extra” on monetary policy and undermine the stability of the euro area and the cartel growth.