Spain and Italy may be poorer that other European countries but not by much.If you dropped by in Rome or Madrid and later onto Paris,Berlin or Manchester you wouldnt see that much of a difference....I would say even that the two former look more modern.Italy has been passing through rough times the later years (and they will continue as long as they keep voting that cancer of Berlusconi) ,but in what Spain is concerned you dont see much difference with other european countries ...and if you do its with the more developed as Germany , Holland,Norway,Sweden or Denmark ...not with UK ,France ,Belgium or Austria for example ..and its way above others as Portugal ,Greece and most (all ) of the eastern countries that entered the EU not so long ago.
Spain is lacking in some areas as education ,democratic tradition (its getting a two party thing as in the US very fast...but the two parties here hate each other with a passion),small I+D in many areas ,and the wages are specially low compared to some other countries ...but its things you would hardly notice if you actually visited the country.Very subtle things .As market its as developed as others and if its smaller its usually because its demography (43-44 million instead of the 65+ of Germany ,UK or France .