Spain, Europe Debt | featured news

Fueling the demonstrators’ anger is the perceived failure by politicians to alleviate the hardships imposed on a struggling population by a jobless rate of 21 percent.

Portugal was put on notice on Tuesday that its credit rating could be cut and fellow euro zone debtor Spain had to pay more to issue new debt, suggesting the currency bloc's crisis will rage unabated in 2011.

Moody's put Spain's Aaa credit rating on review for a possible downgrade because of flagging economic prospects, challenging fiscal targets and rising funding costs.

European Union finance ministers tried to broaden efforts to contain the region's debt crisis on Tuesday and Spanish public sector workers protested over government cutbacks.

Spain will cut state employees' wages and slash investment spending, sparking immediate union anger with a bid to reassure markets that it can get its budget deficit under control and detain the spread of the European debt ...