The bank of Spain said on Friday that the public debt surged to a record at the end of 2011 to stand at 68.5% of the GDP.

The debt-to-GDP ratio rose from 61.2% of the GDP at the end of 2010 and sets the highest since records began in 1995. The Spanish fiscal situation remains abysmal with the nation struggling to cut the deficit and lower the debt amid a recession and record unemployment. The debt ratio is above the 60% EU limit and that adds insult to injury as the market remains skeptic of Spain's ability to cut the deficit in line with their pledge to the Eurogroup to 5.3% of the GDP this year.