Hundreds of thousands of Spaniards, many unemployed youths, took to the streets in 60 cities across the country yesterday, to protest against the latest raft of austerity measures passed by its government.

The rallies yesterday were a precursor to a massive general strike which has been set for 29 March. Two large trade unions – the Spanish General Workers’ Union and the Workers’ Commission – organised the rallies to test the strength of feeling amongst Spaniards.

Many believe that the recently implemented austerity measures, which were passed through the Spanish Parliament, were far too skewed in favour of employers and businesses.

One trade union leader said the austerity package was so heavily tilted in favour of businesses that it made working conditions in Spain resemble those that existed under the dictatorship of General Francisco Franco, who ruled from 1939-1975.

Spain suffers from chronic unemployment, standing at a staggering 23%. The situation is so bad in Spain that some regions are suffering youth unemployment levels that hit 60%, including university graduates.

Spain’s government has acknowledged that the jobless rate is likely to rise beyond 24 % this year despite the reforms, a point taken up by the unions which argue that what is needed is a jobs’ stimulation package based on fiscal and financial incentives and a crackdown on fraud.

Spain’s economy deflated in 2008 with the collapse of a real estate bubble that had previously boosted Spain into becoming the EU’s top job creator for a decade.

The country’s priority now, is to convince investors that Spain will not require a bailout like Greece, Ireland and Portugal. The problem, as always, boils down to the fact that without growth, austerity measures do not have the desired effect. Rather than bring down deficits, experience in Greece has shown that austerity action alone simply exacerbates the problem. Rather than ‘saving money’, economies take a double hit because not only has government expenditure been cut back, but people simply do not want to put money back into the economy.

Spain has been teetering on the brink of meltdown for a good 12 months now. The EU sought to protect Spain by pushing Portugal into taking a bailout. This did work, and the country which was next in the crosshairs was Italy. But now, the markets are back with a vengeance. Spain’s economy is in tatters and its unemployment rates are crippling. It must find the right formula to sort out these issues, else it will be the next country requiring a handout.