I don't have access to the subsribers-only part of the article but from the bit that's public: Having lived and done business in Spain, I can tell that it was never really great on productivity. Most of its growth came from its integration within the EU and how that impacted pretty much every sector (including construction though the sector should experience some harsh correction). A significant part of that growth was also boosted by Brussels money, countless successful companies being based on a model essentially sucking that source. So, a hit was already expected a few years ago already with the integration of the new members who are going to divert part of their Brussels baby milk from the Spaniards.

Spain, far as I can tell from here, seems to be the Florida of the EU. Which isn't a bad position to be in, except that while Florida sucks pension and Social Security money from other states within a nation, Spain is doing this from other states within a currency/trade union, which is not quite the same thing. I can't imagine that if they get really good at it, which they appear to be doing, the other states will put up with having a portion of their earnings going into perpetually subsidizing the good life for retirees living in other countries, and their associated, um, hangers-on.
If other southern countries get as good at it as Spain, though, like Arizona has done by being the same thing out in the West, that might actually make the sting not as bad, and turn the whole thing into a reasonable social contract. An interesting thing to watch as it evolves.

Cyprus has always been pretty good at attracting the Brit retirees. But then they're so shrimpy they'll never amount to more than a blip in an EU-size market.