Acceptable risk management always calls for the projection of central economic scenarios, although it is likewise useful to keep in mind alternative, gloomier situations, namely ‘what could possibly go wrong’ relative to the baseline case. This report sheds light on one of the major risks that Spain’s economy faces, which is its oversized fiscal deficit and government debt. Here there is a chance that this might substantially drive up the risk premiums for the Spanish sovereign bond in a more pessimistic scenario. If this were to actually transpire, it could spill over into the rest of the economy, with the adverse impact that this would entail. This phenomenon might in fact come to pass for additional reasons, such as the heightened political risk in Europe that stems from the outcome of the recent elections. Indeed, since 9 June the sovereign risk premia of the more heavily indebted France, Italy and Spain have ticked upwards, in the latter approaching the 1% threshold.