Spain faces toughest budget of post-Franco era

The Spanish economy is deteriorating rapidly, and a general strike will not help matter any. Nonetheless, strikes, and I am willing to bet increasing violence, will soon befall Spain. Please consider Spain’s new government faces first strike Spain’s two largest unions, Comisiones Obreras and UGT, voted on Friday to call for a general strike on March 29 against reforms they called “the most regressive in the history of Spanish democracy”.

ATHENS/MADRID — Trains and ferries were cancelled and hospital staff walked off the job in Greece on Wednesday and thousands were due to demonstrate across Spain as May Day triggered protests against harsh government spending cuts. Separately, Turkish riot police fired water cannon and tear gas to disperse crowds gathering in central Istanbul for a rally on what has become a traditional labour holiday.

On yet another Friday, Europe is overlooking a gigantic bond-market precipice. Yield on the Spanish two-year government bond is up a whopping 60 basis points to 5.76% Yield on the Spanish 10-year bond is up 26 basis points to 7.27%.

Hundreds of protesters took to the streets outside Spain's parliament Wednesday to condemn plans by the government to reform the collective bargaining system.The rally, behind a police barrier that prevented them from entering the building, took place just a few hundred metres (yards) from where youths decrying the economic crisis have been camped since mid-May."These are our weapons," the protesters shouted, raising their arms."Cutbacks for those in parliament," was another cry, while some, pointing fingers at the parliament, shouted "here is Ali Baba's cave."