Miners take protest march to Madrid

Hundreds of coalminers who had staged a long march from northern Spain protested in the streets of Madrid against cuts in mining subsidies they say will put them out of work, as public discontent over austerity measures grows.

The miners, who had walked 400km from the Asturias region over 44 days, were joined by thousands of supporters, including labour activists, after receiving a hero’s welcome on marching into the capital during the night with lamps lit on their helmets.

Public anger over spending cuts has risen as school and hospital budgets have been hit. Manuel Corte, a security worker from Asturias who joined the miners’ demonstration, called the new cuts a “disaster”.

“I thought all the previous cuts on medicines and pensioners and on education were the worst possible thing but now . . .” he said.

With more than half of young Spaniards without a job, the government said unemployment benefit would fall to 50% of previous earnings, from 60% after the first six months on the dole. Rajoy said the measure was intended to increase the incentive to look for work.

With five years of economic stagnation and recession, unemployment at 24.4% and tax revenue falling, Spain is struggling to reduce the deficit after overshooting its target last year.

The high deficit and weak banks are at the centre of the eurozone’s debt crisis as investors fret Spain could join Greece, Portugal and Ireland in needing a sovereign bailout. Madrid’s borrowing costs have soared in recent months, with the yield on the 10-year government bond breaching the 7% level regarded as unsustainable. Yesterday, that yield fell to 6.81%.

Reuters