Spain Prepares More Austerity, Protesters Battle Police

A drop of 8,000 EUR per annum, that equates to  over 650 EUR (867 USD) a month. Anybody would be unhappy about this. Some people may argue that it is indiscriminate Government spending that resulted in these people getting employed with high salaries in the first place, and they could be right. However the fact remains that people will not be happy about cuts after they've obtained a certain standard of living justifiably or unjustifiably so. As such, expect PM Rajoy to postpone requesting for bailout/austerity measures for as long as possible.

Protesters clashed with police in Spain's capital on Tuesday as the government prepared a new round of unpopular austerity measures for the 2013 budget to be announced on Thursday.

Thousands gathered in Neptune plaza, a few metres from El Prado museum in central Madrid, where they formed a human chain around parliament, surrounded by barricades, police trucks and more than 1,500 police in riot gear.

Police fired rubber bullets and beat protesters with truncheons, first as protesters were trying to tear down barriers and later to clear the square. The police said at least 22 people had been arrested and at least 32 injured, including four policemen.

As lawmakers started to leave the parliament shortly after 2100 GMT in official cars or by foot, a few hundred people were still demonstrating in front of the building. Most dispersed shortly afterwards.

The protest, promoted over the Internet by different activist groups, was younger and more rowdy than recent marches called by labor unions. Protesters said they were fed up with cuts to public salaries and health and education.

“My annual salary has dropped by 8,000 euros and if it falls much further I won't be able to make ends meet,” said Luis Rodriguez, 36, a firefighter who joined the protest. He said he was considering leaving Spain to find a better quality of life.

Via – CNBC