Spain's Economic and Political Predicaments

Approximately 6,000 people gathered in Madrid on Sept. 25 to protest austerity measures imposed by the Spanish government. On the same day, Catalan regional government head Artur Mas announced that the region will hold early elections to legitimize its demands for greater autonomy.

Spain's economic crisis is weakening social stability and threatening the balance of power between the central government and the regions. At the same time, Spain is under international pressure to make decisions regarding its banking bailout and agreement with the European Union to reduce borrowing costs. The means to relieve these pressures are often contradictory, and Madrid will not be able to satisfy all of the parties involved.