Analysis: Spain government is struggling in crisis
Spain's Socialist government is seeing its political power erode as it struggles to chart a path out of deep financial trouble, failing so far to satisfy conflicting demands to cut its budget and stimulate job creation.
The coming months could bring far more problems as Prime Minister Jose Luis Rodriguez Zapatero reforms the country's labor market, risking national strikes and the loss of support from trade unions, a core source of his center-left party's strength.
Zapatero's minority government is already running into serious trouble, although there appears to be no immediate threat of it falling.
A package of austerity measures passed by only one vote in parliament's lower chamber Thursday and the Fitch Ratings agency downgraded Spanish debt on Friday. Opposition parties have called for new elections.
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