Spanish Prime Minister Mariano Rajoy was allegedly involved in a political corruption scandal “Luis Bárcenas Affair”，which，however，would not affect the political stability. The current austerity measures have fuelled social discontents at the regional level，helping the separatist ideas to gain momentum. The Catalan nationalists are attempting to seek for greater political autonomy. Recently，the centuries-old dispute between the UK and Spain over Gibraltar escalated，posing great challenges to the Spain-UK relations. In spite of the signs of economic recovery，it will still take some time for Spain to fully overcome the debt crisis. Both Spain and China organized a series of activities and conferences for cerebrating the 40th anniversary of the diplomatic relations between the two countries.