The thunderclouds and rain in the Spanish plain has turned into a deluge for investors. Fear over Greece is slowly shifting to its much larger "PIIGS" peer. What has happened to get investors in such a tizzy?

For one, the Spanish economy is significantly larger. analyst Eric Bleeker explains that while Greece's economy is roughly the size of North Carolina's, Spain is the eighth-largest economy in the world in nominal gross domestic product  terms. Also, the country is suffering from deep structural problems. Its growth, which outpaced the rest of Europe during the boom, was driven mostly by construction growth that has quickly evaporated. With construction's demise, unemployment has surged. The rate of unemployment for the under-25 crowd is running at almost 40%!

Looking at the problem through the lens of telecom, should investors steer clear of Spanish telephony giant Telefonica (NYSE: TEF)? Bleeker says that investors should worry about the structural problems of Spain, which affect younger users more apt to pay for expensive mobile services. However, the company also has a varied international focus that should keep it performing. For investors just hoping to avoid Spain, Bleeker recommends looking to France Telecom (NYSE: FTE), and investors avoiding the Euro zone can still get solid dividends at home by investing in Verizon (NYSE: VZ).

To find out what Eric has to say about Spain and its telecom industry, watch the video below:

Eric Bleeker doesn't own shares of companies listed above. France Telecom is a Motley Fool Income Investor selection. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.