Both the nature of the Euro and the rate of excahnge are important factors for the budget traveler. have been watching prices now for several years from comments made on the boards and from relatives in Spain, and indeed, Puna and El Boqueron are correct, Spain is no longer inexpensive for the tourist or for a resident.
I am planning my forthcoming trip and I figure I will spend in Spain now about the same as if I were to vacation in NYC, Key West ect. It's a treat and I love Spain! So I don't have to trade in my car yet!!