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Spain to release bank audits, thousands protest cuts

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    Amy Kellogg reports from London

  • Duration 3:29
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-- so let's not talk about protests that are happening in Europe act today while the Spanish government.

Is -- revealed just how much trouble its banking system.

Is really and.

-- Okay.

Soon.

Is -- scene in Madrid over the course of this week.

Riot police clashing with protesters there tens of thousands of angry people.

Out there really complaining about another round of steep budget cuts.

Here's a little bit of context for Spain the unemployment rate is at 25.

Point 1%.

-- That is the highest unemployment rate in the EU and youth unemployment hovers near 15%.

Which may explain the -- some of those protesters that you -- out there.

Spain is the thirteenth largest economy in the world the fourth largest economy in the eurozone.

And look at the -- and Amy Kellogg joins me now live in London -- He's seen is the one country everybody's talking about this week we know that several countries have some big issues why the focus on Spain.

Well I think Martha because as you mentioned and you should and you showed us there were these very violent clashes between protesters and the police this week.

And this was after prime minister Mariano rob rob boy laid out a whole new list of austerity measures and people just saying.

How much more can we take.

And then there is this report card anticipated later today.

About the true state of Spain's embattled banks banks that have taken a hit.

Because the property bubble burst some fear this report card could really just fuel further and security leading to a sort of self fulfilling prophecy.

For example -- bonds or degraded to junk status.

It would mean that most institutional investors would have to sell their Spanish bonds on Monday morning.

Which as you can imagine -- hardly improve the situation now some in Spain have bristled at American reporting about people.

Out of trash cans.

The Spanish according to -- contact there I spoke to are very sensitive about the way they're being portrayed.

And believe that we are exaggerating their problems but -- as you pointed out the fact remains unemployment is at 25%.

And use -- and unemployment at 50% wow.

You know it's sad to see what's playing out on the streets there and Italy.

Is also in very rough shape so what's happening -- -- me.

-- prime minister Mario Monti said that Italians he admitted this are having to -- unprecedented.

Painful measures when it comes to austerity cuts so we saw some demonstrations today in -- big train trade unions.

Marching but the bottom line in Italy is that that newspapers are full of stories of corruption every day politicians using public funds.

For private expenditures.

Hundreds of them -- right now are under investigation -- reading about all of this in the papers is particularly hard for a public.

That is being asked to in door cuts in salaries.

Pensions health care and put it simply.

Countries like Spain and Italy -- And Greece have had the same interest rates that Germany has had for all these years and they haven't dealt with the inefficiencies in their systems they haven't had growth and now it's all just exploding she can -- -- back to them -- issues really coming home to -- it's a lesson for the world.

And we hope that they can.

Street an app Amy thank --

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