Spanish workers staged a second general strike this year asunions across Europe prepared the biggest coordinated protests yetagainst budget cuts that policy makers say are needed to end theregion's debt crisis.

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In Spain, unions said most auto and metal workers joined thestrike, even as demand for electricity was just 12 percent belowusual. One of Portugal's two biggest labor groups also called astrike. Partial walkouts are planned in Greece and Italy, andFrench unions are urging workers to join protest marches.

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Opposition to Spanish Prime Minister Mariano Rajoy's cuts inhealth, education and welfare benefits is growing while thosemeasures are failing to rein in the budget deficit or bring downborrowing costs. Demands for less austerity are gaining traction asthe International Monetary Fund recommends nations including Spainslow the pace of budget cuts.

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“This is a strike against the suicidal economic policies of thegovernment,” Ignacio Fernandez Toxo, head of Spain's CCOO union,told supporters late yesterday.

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Rajoy, who won a landslide election victory a year ago, iswrestling with the second-largest budget deficit in the euro regionwhile trying to revive the economy from a five-year slump thatpushed the jobless rate to 26 percent. He is trying to avoidfollowing Portugal, Greece and Ireland into seeking a sovereignbailout as Spaniards resist the measures being implemented as acondition for the 100 billion-euro ($127 billion) European bankrescue he agreed to in June.

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Economy Minister Luis de Guindos was the first minister tocomment publicly on the strike, saying the government would pressahead with the policies that prompted the protest.

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“The government is convinced that the road it has embarked on isthe only one possible, the only alternative available to us to exitthe crisis,” he told reporters in Parliament, where police steppedup security ahead of protests planned later today.

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Unions, which staged two general strikes in the decade through2010, have called as many walkouts since Rajoy took office as theytap into taxpayer anger at shouldering cuts and the cost ofrescuing banks at the same time. As outrage also grows overSpaniards losing their homes for failing to keep up with mortgagepayments, Rajoy pledged last week to rush through measures toprevent families being evicted.

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Opposition Socialists

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Even as he enjoys a parliamentary majority, Rajoy is seeking thesupport of the main opposition Socialist party for the changes, andnegotiations are set to resume for a third day today. Banks, whichare seeing an increase in protest graffiti at branches, havealready agreed to a two-year freeze on evictions for “extreme”cases.

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Between 50 percent and 100 percent of auto workers joined thestrike during the night shift and 83 percent of metal workerswalked out, Spain's Comisiones Obreras union said in a statement.Police arrested 62 people and 34 were injured, including 18 policeofficers, Interior Ministry Director General Cristina Diaz told atelevised news conference. Protesters will gather again at 6:30p.m. in Madrid.

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Power demand was 12 percent below usual at 12 p.m., data fromgrid operator Red Electrica Corp SA showed.

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In Portugal, where the CGTP labor group called the strike toprotest measures including wage and pension cuts, state-ownedairline TAP SGPS SA canceled flights. Lisbon's metro service wasshut and state-owned train operator CP-Comboios de Portugal saidmost trains won't run. Italian transportation and shipping will bedisrupted throughout the day due to staggered, four-hourwalkouts.

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Bloomberg News

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