Millions Protest Austerity in Spain and Portugal

Tens of thousands of demonstrators rallied in Spain and Portugal on September 15, to protest their governments’ austerity measures. They came four days after around 1.5 million gathered in Barcelona calling for Catalonia to become independent from Spain.

The economic crisis is forcing both countries to make tough decisions. Portugal is changing social security contributions, raising the amount workers have to pay and lowering the amount companies pay. Employees’ contributions have risen from 11 percent to 18, while employers’ contributions have fallen from 25 percent to 18.

Many are outraged at losing 7 percent of their income. Organizers estimated that around 670,000 turned out to protest over 40 cities, but tv channel estimates put that figure considerably lower.

In Spain, media outlets estimated that at least 50,000 marched in Madrid, as the government struggles to avoid requesting a full bailout package. They have raised sales tax from 18 to 21 percent, cut eliminated bonuses for government workers and reduced unemployment benefits.

But the most discontent comes from Catalonia. The regional government in Catalonia is running out of money and needs a bailout from the government. The government, who can ill afford these bailouts, wants to place strict conditions on the regions receiving them. But Catalonia is a rich region that generates more than enough money to finance itself. It has to subsidize Spain’s poorer regions under the nation’s tax structure. They are outraged at having to submit to government conditions simply to get more of their own money back.

Catalonia’s leader, Artur Mas, wants the region to gain “fiscal sovereignty.”

The protests risk breaking open old wounds in Spain. Catalonia was on the losing side in the Spanish civil war in the 1930s.

Spain and Portugal are heading down the same road as Greece. The division and unrest will only get worse as the harsh reality of the financial crisis becomes clear.

Large-scale unrest helped bring dictators to power across the world in the 1930s. This domestic instability will transform into international instability. Continue to watch unrest in Europe closely.