Thousands protest austerity measures in Spain
The demonstrations come just a day after a mass protest against healthcare cuts.
The centre-right government of Prime Minister Mariano Rajoy is committed to 60 billion euros worth of cuts through 2014.
On Monday Rajoy defended his government's austerity plan saying, “there are no easy answers for difficult situations, (but) we are trying because it is our obligation to rectify this situation,” adding that the economy should improve in 2013, despite the prediction of of 1.3 percent shrink next year.
The government says the austerity is designed to restore trust from international lenders, who are propping up the indebted country. Earlier this month, Standard & Poor’s rating agency downgraded Spain’s credit rating to BBB- just one above junk.
The government’s measures have been met with mass public protest as Spaniards have seen their incomes vanish and their house values plunge.
The country has alternated between periods of contraction, followed by a weak recovery since property prices collapsed during the worldwide economic crisis in 2008.“The Spanish economy was built on an unsustainable property bubble, and Spain was spending lavishly, living on the never-never,
” Patrick Young, a prominent independent financial advisor and author, told RT.“The ultimate problem is that the Spanish government does not have any money.”
Alongside Greece, Spain has the worst unemployment problem in Europe. A quarter of the population is currently out of work.
The government believes that a re-structuring of its public sector and a substantial bank reform will eventually make the country more competitive, and create more jobs.
Demonstrators take part in a march to protest the Spanish government's decision to stop pensions rising in line with inflation, in Madrid December 17, 2012. (Reuters/Susana Vera)
The sign reads: "Popular Party, dangerous party". (Reuters/Susana Vera)
The signs read: "Cuts for bankers and priests" and "The pension, my right!". (Reuters/Susana Vera)
Demonstrators take part in a protest against government health cuts and privatisation plans in Madrid on December 16, 2012. (AFP Photo/Pedro Armestre)
AFP Photo/Pedro Armestre
The placard reads," I am patient , I am voter" (R) and "We want patients not customers". (Reuters/Juan Medina)