On March 30th, Spain’sfinance minister, Cristóbal Montoro, finally presented the 2012 budget. It is the most austere budget passed by the country since the creation of Spanish democracy in 1975, and it prompted some strong protests. But while it created tension within the country there is scant sign that it has increased investor confidence, with government bond yields little changed. Spain's problems go much deeper than its fiscal woes and a focus on the spending deficit alone misses the point. By adding more unrest and social tensions to the equation, this budget may do more harm than good.