Thread: Riots Explode In Spain As Thousands Protest clash w/Police in 24-hour general strike

Violence on Spain's streets sparks slip in U.S. stock futures... as thousands clash with police in 24-hour general strike

By Daily Mail Reporter
PUBLISHED: 10:25 EST, 29 March 2012 | UPDATED: 10:56 EST, 29 March 2012
Comments (5)

U.S. stock futures slipped today as riot police took to Spain's streets to stop protesters burning bins, vandalising shops and attacking officers during a one day nationwide general strike.

Dow Jones industrial futures fell 43 points to 13,010 and the Standard & Poor's 500 futures slid 5.5 points to 1,394.7. The Nasdaq composite futures fell 9.25 points to 2,758.75.

Spaniards angry with having the eurozone's highest unemployment rate refused to go to work in protest at further crushing austerity measures being brought in by the new centre-right Popular Party government.
In Madrid more than 1,000 members of the National Police's mobile anti-disturbance units patrolled the streets on foot and in armoured personnel carriers.

Scroll down for video...


Blaze: Firemen try to extinguish burning waste containers after clashes during the national strike in Barcelona





Running battle: Firefighters fought back the flames in Barcelona after protesters set fire to rubbish bins in the city



Protest: Tyres were burnt in Burgos as boisterous picket lines formed across the country

In Barcelona there were several incidents, the worst being an attack on a bingo hall in the early hours in which troublemakers used the strike as a cover to loot €2,250 from the cash register. Bins were set on fire as small groups battled police.

At the city's El Prat international airport there were angry scenes when travellers who checked last night that their flights would not be affected arrived to find they had been cancelled early in the morning.


More...

• Spain's strikes take the country further towards the fate of Greece
• Hundreds of flights cancelled as general strike cripples Spain

They then found it difficult to get back into Barcelona because there were few taxis or buses.
The country's two major trade unions, the Socialist led General Workers' Union - UGT - and the Communist dominated Workers' Commissions - CCOO - which called the protest action, claimed that more than 70 per cent of the work force was out.

Brutal: Picketers clashed with police in the northern city of Santander during the 24 hour strike





Force: Police arrested a woman in Madrid (left) as undercover police buster activists in the same city (right)


Kung Fu: A demonstrator is pushed by riot police in Pamplona, northern Spain, during the strike

It said virtually all workers at Renault, SEAT, Volkswagen and Ford car factories around Spain, and at other industrial, mining and port facilities, honoured the strike during the overnight shift.
Picketers tried to block wholesale markets in Madrid and other cities and commuter train service were disrupted in Barcelona.
Outside Atocha, one of Madrid's main commuter and long-distance rail stations, picketers waved red union flags and blew shrill whistles as police looked on.
Some picketers tried to convince a coffee shop owner to join them, and slapped a pro-strike sticker on his glass window.

Angry: A bonfire was set up outside Barcelona's Stock Exchange Market during the strike





Bubbling over: Security was high in Pamplona (left) and Barcelona (right) where riot police flooded the streets



Protection: Riot police officers stood in front of Pamplona's El Corte Ingles as protesters took to the streets

A Molotov cocktail was thrown at a police car in the eastern city of Murcia, and Spanish National TV showed footage of police in Barcelona on horseback accompanying buses trying to leave a parking garage, and scuffling with a picketer.
Regional TV stations in Andalusia in the south, Catalonia in the northeast and Madrid were also forced off the air because of the strike.
But with the exception of those isolated incidents in which 58 pickets were arrested and nine, including six, officers received minor injuries, peace prevailed.
Observers noted that in a country where the jobless rate stands at 23 per cent, and almost one in two young people are out of work, many simply did not want to lose a day's wage.

Massive: The government tried to play down the amount of people attending the protests, but activists filled the streets of Seville in this demo





Anger: Protesters shout slogans in Madrid (left) as masked protesters throw stones in Barcelona (right)


Mega: Protesters stretched as far as the eye could see in the northern city of Coruna


The government dismissed protesters claims that the strike was 'massive' though by saying its impact was 'clearly inferior' to the last one, held under the Socialists in September, 2010.
Cristina Diaz, the Popular Party's director-general of Interior Policy, said there was a sparse following of the strike call in the public, commercial and banking sectors, and claimed that in most work places normality ruled.
But another factor believed to have played a part in keeping people at work, said observers, was fear of losing their jobs.
New measures brought in by the party which pledged in the run-up to last autumn's general election to create more jobs have made it easier for bosses to sack staff.


No messing: Police stood guard outside El Corte Ingles' department store in Coruna





Anger: A protester argues with an older man in Barcelona (left) as protesters hold a doll of Spain's Prime Minister Mariano Rajoy in Seville (right)



Grabbed: Police stopped a protester in Madrid during the union-sponsored general strike


The piece of legislation also trims wages and modifies other working conditions by citing concerns over, for example, productivity.
The idea behind the decree is to make Spain more competitive once the rest of Europe recovers and employers are less wary of hiring.
The demonstrations come the day before the government will serve up even more austerity pain with a budget to feature tens of billions of euros in deficit-reduction measures.
The government's cuts are designed to help Spain in its struggles to satisfy both the European Union and the international investors who determine the country's borrowing costs in the international debt markets.
They will therefore have a lot of say in whether Spain will follow Greece, Ireland and Portugal in needing a bailout.
Video: Police arrest protestors after clashing on the streets in Barcelona



Violence on Spain's streets sparks slip in U.S. stock futures... as thousands clash with police in 24-hour general strike | Mail Online

Spanish general strike - in pictures

Spanish workers staged a 24-hour general strike to protest against the governments labour reforms. Spain has one of the highest levels of unemployment in the eurozone, with the number of jobless reaching 5 million in January

guardian.co.uk, Thursday 29 March 2012 10.46 EDT





Barcelona: a barricade of burning tyres at the main entrance of Mercabarna, the biggest wholesale market in Barcelona






Barcelona: a fireman looks at several charred rubbish bins



Barcelona: demonstrators push containers to block the street






Barcelona: masked protesters throw stones

Burgos: protesters stand near burning tyres outside a bus depot


Madrid: a worker walks past high-speed trains at Atocha station during the general strike



Madrid: a man who has been injured in a clash with police outside the garage of the Municipal Transport Company (EMT) as strikers try to stop public transport from operating



Madrid: a woman behind a shop's iron grille

Madrid: protesters at Atocha train station

Madrid: shopowners wanting to keep their shop open for business stand behind police

Murcia: a striker rebukes a policeman



Pamplona: a riot police officer protects a shopping centre

The Spanish Riotcam Has Arrived

Submitted by Tyler Durden on 03/31/2012 12:02 -0400

Spain's honeymoon with its new government is over.

Following months of hope that Spain will somehow tiptoe around the sensitive topic of austerity, despite promises of such and slow leaking of bond yields wider, yesterday the government promised to generate savings of €27 billion of about $36 billion (Spanish GDP is less than one tenth of America's, so an equivalent US cut would be about $400 billion), as demanded by Europe, but which will leave a harsh aftertaste with the general population. As Reuters notes: "The central government could meet its target but there's still a risk from the regions and the social security budget," economist at Madrid-based think tank Funcas Angel Laborda said. "I get the impression the central government has created a budget it can meet but has left everyone else in a rather difficult situation." Well, technically no. After all what Spain is doing is following the Greek playbook page by page, as expected back in October 2011 - first Spain sabotages its economy, then it demands more money, then it promises austerity, then it never keeps its promises but in the meantime, Germans are on the hook for hundreds of billions in more bailout cash. At the end of the day (for the euro), it will be they who are in the worst position, but since they get to retain their export partners (whose current account deficits the Bundesbank funds), all is well. That is, at least, until this latest unsustainable bubble pops.
Furthermore, as noted yesterday, it will be Spain's regions that are about to become front and center for the bond vigilantes:

The regional authorities, which account for around half of the total spending budget and were responsible for a large part of the fiscal deviation last year, must slash their own deficits in half this year.

But, with few details on Friday of how the central government cuts will affect the regions - a full breakdown will be published on Tuesday - it is still unclear if Madrid's austerity comes at the cost of the 17 autonomous communities.

What is clear is the regions, which hold the purse strings of the much treasured state health and education systems, will be forced to make unpopular cuts which could fuel growing public anger like that seen during the general strike on Thursday.

Marches across the country saw violent flashes for the first time since the crisis began last week as frustration erupted at the government's failure to address the 23-percent unemployment rate which rises to almost 50 percent for under-25s.
...
The economy is expected to shrink by as much as 2.7 percent this year and could find little to spark growth if the government is forced to raise taxes to meet this years 5.3 percent deficit goal and the target of 3 percent in 2013.

Rajoy was wrong to push Brussels for a loosening of the original deficit goal of 4.4 percent of GDP for this year and should have asked instead for a two year extension of 2013 target, an editorial in the left-leaning El Pais wrote.

Recall:

Is Spanish Regional Debt Out Of Control?

Spanish regional debt currently stands at 13% of GDP and has surged from EUR60bn in 2006 to over EUR140bn currently. As Credit Suisse points out, the top four regions account for the majority of GDP, two-thirds of regional debt, and, with the exception of Madrid, substantially missed their deficit targets. What is more worrisome is the heavily front-loaded nature of the maturing debt with substantial refinancing needs in the next 2 years and this regional debt is split between bonds and loans - with many of the latter from Spanish banks - yet another illustration of the interconnected contagion that is building more rapidly. The growing crisis in refinancing (liquidity and costs) for regional debt developed the idea of Ponzibonos 'Hispabonos' - debt issued by regions but guaranteed by the central government. The conditionality of these guarantees with regard to deficit targets wil be critical but once they are issued, the risk is that the regions are unable to get their finances under control, the Spanish debtload increases, and there is no longer the flexibility for a regional debt restructuring, should one be necessary.



But the refinancing needs are massively front-loaded (and rely not just on markets but the banks to roll loans also)...




As a reference, front-loaded means the can can not be kicked down the road. It has to be resolved soon.
So as Greece is supposedly fixed, at least until its 3rd bailout, which was hinted at yesterday by the PM, Spain has once again officially joined the fray.
In the meantime, the people are less than delighted with this latest episode of mean reversion, sometimes incorrectly called austerity, as can be seen on the following pictures from last week's General Strike across Spain, which morphed into a less than general riot. Since more tax hike are imminent, we will very likely soon have to find a local version of the Syntagma square riot cam, preferably one situated in the middle of Plaça Catalunya.

Many of the same photos that are above at the page link




The Spanish Riotcam Has Arrived | ZeroHedge

Spain unveils 'most austere' Budget in democratic history

Spain unveiled "the most austere budget in democratic history" with €27bn of cuts and a 7pc rise in utility bills but still failed to win over economists.

Street art in Madrid prior to the mass protests on Thursday Photo: Demoti

By Fiona Govan
6:10PM BST 30 Mar 2012
219 Comments

The cuts fell short of the €34bn experts said were required to reduce the budget deficit from 8.5pc to 5.3pc of gross domestic product (GDP).

By targeting businesses rather than individuals the Government was accused of short-termism.

Christian Schulz, senior economist at Berenberg Bank, said: "If the UK has put up a sign saying 'open for business', then Spain has put up a sign saying 'siesta'.

"They’ve really tried to spare consumption, but since they’ve had to cut somewhere, they’re really hurting corporations."

Mariano Rajoy's conservative Popular Party government approved the draft budget on Friday with spending cuts across all ministries averaging 16.9pc and a further freeze on public worker salaries.

Contrary to expectations pensions will remain indexed to inflation and there will be no rise in VAT. "We are taking extraordinary measures because the situation is extraordinary," explained Soraya Saenz de Santamaria, deputy Prime Minister.

The austerity measures came a day after a 24-hour general strike saw more than 1m people take to the streets in cities across Spain to protest against cuts. While the government insisted such austerity was needed, there was public relief that there would be no rise in VAT or further cuts in pensions or unemployment benefit payments.

However, electricity and gas bills will rise by 7pc and 5pc respectively in April in a bid to reduce energy subsidies that are adding to Spain's debt, said energy minister Jose Manuel Soria.

Spain's finance minister Cristóbal Montoro was confident that the new package would enable Spain to meet its deficit target of 5.3pc by the end of year as required by Brussels, down from 8.5pc in 2011.

Mr Montoro said: "Our ultimate goal will be to meet the 3pc deficit by 2013. We are in a critical situation that has forced us to respond with the most austere budget of the Spanish democracy."

The promised deficit reduction of 3.2pc of GDP would be the biggest measure since at least 1980 and comes in a budget that was delayed four months because of the change in government. The austerity task is made more difficult by the recession, with the government predicting a 1.7pc slump in economic output this year.

Mr Montoro also announced plans for a tax amnesty, stating that undeclared assets or those hidden in tax havens can be repatriated by paying a 10pc tax, with no criminal penalty.

On corporate taxes, he said that rather than raise rates, the government will eliminate deductions that companies have previously been entitled to and which lowered their effective tax liability.

Speaking from Copenhagen, where he was attending a meeting of eurozone ministers, Luis de Guindos, Spain's economy minister, said he was confident the budget would reassure the rest of Europe.

"Spain is going to stop being a problem, especially for the Spanish people but also for the European Union." He said he trusted his eurozone counterparts to "understand perfectly the effort that the Spanish government is making".

Spain unveils 'most austere' Budget in democratic history - Telegraph

Violence, Firebombings Erupt as Spain Announces €27 Billion Deficit-Cutting Plan; Spanish Economy Will Implode; Spain Headed for Bond Revolt and Bailouts

Saturday, March 31, 2012 1:35 AM



My friend Bran who lives in Spain writes ...

Hello Mish

Here are thoughts from the last couple of days on the strikes, protests, and violence in the wake of more austerity plans by Prime Minister Mariano Rajoy.

Pro-government news played down the strike to a virtual non-event, giving much criticism of the unions methods and exaggerations. Reality however, is that there is enough support by strikers to shape future politics, especially as austerity starts to bite.

The unions have promised to step up protests. The Indignado 15 Million Movement also protested, but separately from the unions.

One comment stuck out - German Chancellor Angela Merkel said the protests did not represent Spain. Maybe she was trying to be reassuring, but she is taking sides against maybe a million or so people of a foreign population, not very wise at best and otherwise agitating.

Spain Announces €27 Billion Deficit-Cutting Plan

MarketWatch reports Spain Announces €27 Billion Deficit-Cutting Plan

The Spanish government on Friday delivered what it called the biggest fiscal adjustment in the country’s democratic history, unveiling a 27 billion euro ($36 billion) deficit-reduction plan that includes sharp spending cuts across government ministries and higher taxes for corporations.

With images of nationwide demonstrations and strikes against labor reforms still fresh, the weight of the budget appeared to fall on big companies and government spending. Labor unions said nearly 1 million took part in Madrid’s rally alone Thursday evening.

Corporations will be asked to pay higher taxes this year, and their tax breaks will be reduced while the government said value-added-taxes would not rise. It said tax receipts for VAT would fall 2.6% as a result of weak growth in Spain.

Budget Minister Cristobal Montoro said all ministries would need to reduce their budgets by around 17% this year, which was slightly higher than expected, saving a total of up to €65.8 billion. Salaries for public workers will not be reduced, but will be frozen this year.

Electricity prices will rise 7%, to pay off a €24 billion electricity-tariff deficit that accumulated due to the difference between consumer prices set by the state and producer’s costs. Tariffs paid by electricity companies will rise 5%.

Austerity Measures Prompt Spanish Workers To Strike

NPR reports Austerity Measures Prompt Spanish Workers To Strike

Workers walked off the job in Spain on Thursday, halting public transport, closing schools and leaving hospitals with emergency staff only. The general strike was called by unions in response to the conservative government's labor reforms, which let companies opt out of collective bargaining agreements and fire workers more cheaply. But more punishing austerity could still be to come, as Spain tries to whittle down its budget deficit under pressure from Brussels.

Violence Erupts in Spanish Strikes

The Washington Post has a nice 19-image slideshow Violence Erupts in Spanish Strikes. Here are a few images.



March 29, 2012
A demonstrator throws stones next to a burning Starbucks, which was stormed by demonstrators during clashes with police at the general strike in Barcelona. Spanish workers livid over labor reforms they see as flagrantly pro-business staged a nationwide strike Thursday and tried to bring the country to a halt by blocking traffic, closing factories and clashing with police in rowdy demonstrations.
Emilio Morenatti / AP



March 29, 2012
People attend a demonstration in Valencia, Spain, during a national strike.
Jose Jordan / AFP/Getty Images



March 29, 2012
A woman cries after demonstrators smashed a shop window during heavy clashes with police during a 24-hour strike in Barcelona.
David Ramos / Getty Images

Eurozone crisis live: Violence in Barcelona Amid Spanish General Strike

The Guardian has numerous images and videos in its report Eurozone crisis live: Violence in Barcelona Amid Spanish General Strike



Protesters crowd in Madrid's landmark Puerta del Sol square for a closing rally tonight. Photograph: Paul Hanna/Reuters

As many as 900,000 people took part in the march to Madrid's centre square, Puerta del So.

Spanish Economy Will Implode

Labor reforms are badly needed but electricity price hikes of 7%, higher corporate taxes, increased VAT and other tax hikes are not. Spain needs more time not more tax hikes. With unemployment rate already at 23.3% austerity measures are guaranteed to make matter worse, and tax hikes on top of it all will be the nail in the coffin.

Prime Minister Rajoy forecasts the Spanish economy will contract 1.7% and government GDP targets and budgets are based on that. I bet that 3% contraction minimum is in the works if Rajoy enacts the tax hikes and austerity measures as planned.

Things will be much worse if the violence and strikes stay in an elevated state. Unlike the protests a year ago, these strikes have more serious overtones.

Spain Headed for Bond Revolt and Bailouts

The idea that Rajoy will cut the deficit to 5.3% this year and 3% next year are purely Fantasyland proposals.

For now, the bond market has given Rajoy the benefit of the doubt, assuming you call 5.35% on the 10-year bond any kind of "benefit". With the suspension of the LTRO, and a budget targets that cannot possibly be met, look for a substantial move up in Spanish bond yields.

That will also punish any Spanish banks foolish enough to load up on bonds in a misguided carry-trade play. With Spain, nearly everything is worse than the government reports, and the reports are awful.

A bond market revolt and bailout are in the cards this year. Ultimately, Spain will not survive in the Eurozone.

Mike "Mish" Shedlock
Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis: Violence, Firebombings Erupt as Spain Announces €27 Billion Deficit-Cutting Plan; Spanish Economy Will Implode; Spain Headed for Bond Revolt and Bailouts