Spanish civil servants accost cabinet members

Spanish civil servants have taken to the streets of Madrid to protest against the government’s austerity measures, which include salary cuts and tax increases.

On Friday, a large number of civil servants congregated outside the presidential palace, whistling and booing, as cabinet ministers met to discuss the new austerity budget. They approved sales tax hikes and more spending cuts.

“Spaniards are living today one of the most difficult and traumatic moments of our history, a crisis which has muted into a daily drama for millions of Spaniards,” Deputy Prime Minister Saenz de Santamaria said after the cabinet meeting.

Also on Friday, more than 1,000 Spanish “indignant” protesters held a demonstration against austerity cuts. The protesters gathered outside the headquarters of the Popular Party (PP) of Prime Minister Mariano Rajoy and shouted “resign, resign!” and “they are lining their pockets!”

Police clashed with the protestors and charged them with batons.

On Wednesday, Prime Minister Mariano Rajoy announced details of the 65-billion-euro ($80 billion) austerity package, which included an overhaul of city and regional governments, wage cuts for public workers, and a decrease in unemployment benefits.

The Spanish economy, the fourth-largest in the 17-nation eurozone, is suffering from the aftershocks of a real estate bust that has devastated not just the banks, but families as well.

Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, taking with it millions of jobs. Unemployment is approaching 25 percent.

The worsening eurozone debt crisis has increased Spain’s financing costs and raised concerns that the country might have to seek a European Union bailout similar to Greece.

On June 9, eurozone finance ministers agreed to lend 100 billion euros to Spain to save its teetering banks, which means more debt would be added to Madrid’s already huge official borrowings.

Many economists believe Spain will soon enter into a new recession.