Updated on
Summary Unemployed Spaniards held a series of angry demonstrations against economic crisis cuts.
Unemployed Spaniards on Saturday held the latest in a series of angry demonstrations against the governments economic crisis cuts, as fears rose for the countrys financial stability.Several hundred people thrown out of work by the recession converged on the capital after walking hundreds of miles from around Spain and gathered on the grass opposite Madrids Prado museum waving signs and shouting slogans.Its a long walk, but we couldnt just stay at home, said Rafael Ledo, 31, tanned and with a walking stick in each hand after hiking some 500 kilometres (310 miles) from the northern region of Asturias.The protestors planned to march together at 1630 GMT to the central Puerta del Sol square, the symbolic hub of social protests since last year.Hundreds of thousands of demonstrators massed there on Thursday night in a mostly peaceful mass protest that ended with police firing rubber bullets to disperse small groups.Saturdays protests came as Spains economic and financial outlook darkened. The government warned Friday the recession will drag on through 2013, and the interest rates on Spanish sovereign bonds rose to danger levels.An almost-daily string of protests erupted after Prime Minister Mariano Rajoy on July 11 announced 65 billion euros ($80 billion) in fresh austerity measures including cuts to pay and unemployment benefits.Protestors say the efforts to cut Spains deficit target the poor unfairly and will depress the recession-hit economy further.Rajoys measures raise sales tax (VAT) and cut benefits for the newly unemployed after six months from 70 percent of basic salary to 50 percent. Previously, the reduction had been to 60 percent.On Friday the government cut its economic growth forecast for 2013 from 0.2 percent growth to a contraction of 0.5 percent. Unemployment is at more than 24 percent.Under pressure from European authorities to calm the anxiety over Spains finances, the government says it has no choice but to pass its harsh economic measures given the high public deficit.On Friday one of Spains indebted regional authorities, Valencia, reached out for emergency aid from a fund of 18 billion euros set up by the central government for struggling regions.In response, the Madrid stock exchange plunged by 5.8 percent.A eurozone rescue deal for Spanish banks finalised by finance ministers on Friday provided no relief.The return on Spanish 10-year bonds jumped above the 7.0 percent danger level and another key measure, the difference between the yields on Spanish and safe haven German bonds, moved dangerously high, topping 600 points.The indicators revived warnings that the banking bailout may not be enough to stabilise Spains finances, a key concern for the future of the eurozone.The soaring of the risk premium pushes Spain close to a total bailout, headlined the right-leaning newspaper El Mundo on Saturday.
