Germany has a better educated workforce, a much larger amount of flat land that is connected by waterways, and a central location to other high income nations.

Germany has a better educated workforce, a much larger amount of flat land that is connected by waterways, and a central location to other high income nations. They are more competitive. For Spain to be competitive, they need to be able to price their goods lower. This means that their money won't be able to buy as many things from abroad, but they will be able to export things and conduct business amongst themselves. The simple fact is the fiscal policies in Europe are united and the political policies differ. The Euro was supposed to help unify the continent and avoid another war but instead has put the southern countries into debt.