Azernews.Az

By Sara Rajabova, AzerNews Staff Writer

Tens of thousands of people have rallied in Spain and Portugal in protest at spending cuts and tax rises in the debt-hit countries.

In Madrid, public sector workers from all over Spain blocked the capital's Plaza de Colon square and nearby roads.

Protests were held in Lisbon and across Portugal, with one person reportedly attempting to set himself on fire.

The Spanish and Portuguese governments say the austerity measures will lead to economic recovery.

Tens of thousands of Spanish workers have converged in Madrid from all parts of the country and every profession to voice their anger at the government's handling of the economy.

Teachers, nurses and social service workers all protested against the spending cuts and tax rises that, in order to cut foreign debt, have strangled the economy and plunged Spain into a deep recession with record unemployment.

"Yes, we are making our voices heard here, but soon it will be in ballot boxes at a referendum," said union leader Ignacio Fernandez Toxo.

That is just what many in the trades union movement now want: a referendum on the government's handling of the debt crisis. The call has not yet been taken up by the opposition Socialists.

"We shouldn't accept the pressure from Germany. All the southern countries, Greece, Spain, Italy should have a strong line and stand strong opposite Europe and say: 'if we have to pay debt we will, but not in these conditions of slavery'," said one marcher.

Groups took a colour; green for teachers, orange for the elderly and dependents, black for civil servants, white for medical workers, and violet for women.

In July, the government announced a 65bn-euro ($80bn) package of public sector wage cuts and tax rises -- part of a deal with eurozone leaders to help rescue Spain's troubled banks.

Madrid has also accepted a loan of up to 100bn euros for the country's banks and is set to announce a further series of economic reforms by the end of September.

Prime Minister Mariano Rajoy continues to deny that his country will request a full-blown bailout as he prepares a further round of budget cuts.

In Portugal, big rallies were mostly incident-free in Lisbon and Porto but, in the capital, tomatoes were thrown at offices belonging to the IMF and there were reports of scuffles between protesters and police.

In the northern town of Aveiro, one demonstrator was taken to hospital after trying to set himself alight in protest against government policies, reports say.

Portugal's RTP television quoted firefighters as saying his life was not in danger.

Portugal has already cut public sector wages and raised taxes to reduce its budget deficit and deal with its economic crisis.

The country agreed a 78bn-euro bailout deal and recently passed the latest review of its spending cuts.

For many, the last straw was an announcement a week ago that employees will pay sharply higher social security contributions from next year, even as employers' contributions are cut, reported the BBC's correspondent in Lisbon.

Even prominent figures in the ruling parties have come out against a measure that would seem to hit the poor at least as hard as the rich, the BBC correspondent reported.