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June 21, 2012

Thousands Protests Against Austerity Measures in Spain

by VOA News

Thousands of Spanish union members led protests against austerity measures in the streets of Madrid, Wednesday.

The protesters want the government to consider new policies, saying the austerity cutbacks approved by the new conservative administration have not improved employment or the economy.

They are concerned that Spain may have to take a European Union bailout, similar to Greece, Ireland, and Portugal, to stay solvent.

Spain announced it has raised $2.8 billion in a bond sale on Thursday.

The announcement comes on the same day Spain is to get independent audits on how the recession and bad real estate deals have impacted banks.

Spain is expected to use that information to determine how much of a $126 billion eurozone loan it will use to prop up banks.  There is concern Spain's borrowing will add to country's debt, making it more difficult for the government to dig out from the recession.

Some information for this report was provided by AP and Reuters.