Spain's relationship to Judaism is long and complex. There are definitely Spanish Judeophiles (King Juan Carlos' wife, Queen Sofia, has publically said that Sephardic Judaism was one of her great interests).
But I was disturbed to find this graffiti in a very public, visible area right off Madrid's PLaza Del Sol. No attempt had been made, it seems, to remove it. I asked someone who worked nearby how long it had been there. She said it had been there for at least for several months.
I believe Americans tend to think that European attitudes about race and religion are similar to those held by Americans. I believe this is mistaken. For Americans, WWII was a long time ago. For Europeans, who have a longer view of history, it was just a few days ago.
I also saw a number of graffiti swastikas throughout our travels in Spain. Each time, a circle had been drawn around it, and a bar had ben drawn through it. This is a hopeful sign, but often the swastika was drawn with a different color than the circle and bar.