The under pressure Spanish Prime Minister Mariano Rajoy announced a new round of austerity measures amid rising anger over the country's dire economy.
Speaking in Madrid he said the government plans to implement at least €65bn in budget reforms, only days after winning support for a European-led rescue for the country's beleaguered banks and an extension on its deficit reduction timetable. He also plans a 3 % hike to VAT - taking it to 21 % while simultaneously cutting some income taxes, eliminating property tax breaks and setting out timetables for state sales of airport, railway and port assets.
Meanwhile hundreds of angry Spanish Miners who had walked for 19 days across the country, to protest against government cuts, were welcomed by jubilant crowds in the heart of the capital city Madrid. They fear a drastic cut in their subsidies will eventually lead to mine closures and force thousands of them to join the queue of more than 4 million unemployed in Spain
Spain has been rocked by numerous protests since the crisis began and Rajoy has been steadily losing support since his People's Party's landslide victory last November. The Spanish leader was also reportedly under pressure over the prospect of small savers losing billions of euros through a write-off of certain bank debts.
Written and Presented by Ann Salter