Demonstrators held a rally last night (Saturday) to protest against the austerity measures being put in place by the Partido Popular government in Madrid. Carrying banners saying “Rescate A Las Personas” (Rescue The People) and “No A Los Recortes” (No To The Cuts) the demonstrators want the Rajoy government to reverse the latest package of cuts and tax rises announced last week and instead put in place measures to stimulate growth and job creation.

There have been protests in around 80 cities in Spain this week after the government made public the details of the €65 billion (£60bn; $80bn) package of public sector wage cuts and tax rises. The Spanish Prime Minister Mariano Rajoy claims the cuts are necessary to bring Spain’s budget deficit under control and meet EU spending targets. The Spanish parliament ratified the measures on Thursday.

As part of the planned tax rises, the standard rate of VAT (IVA) will go up from 18% to 21% and the reduced rate from 8% to 10% on the 1st of September.

Meanwhile the problems that the Spanish economy face have helped propel Sterling to its highest levels against the Euro since October 2008, with the Pound buying around 1.28 Euros on Friday.

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