The deteriorating economic conditions in Spain with the economy slipping deeper in recession and unemployment hovering at an all time high of 25.0% demonstrations in Spain over new austerity ended violently on Tuesday. Spaniards are angry at their government and worsening state and object a new round of tough spending cuts ahead of the 2013 Budget.

Thousands of protestors clashed with riot police in Madrid on Tuesday over the sever austerity measures as demonstrations ended violently. The demonstration was organized in response to the unpopular austerity measures announced by Prime Minister Rajoy, aiming to cut the budget by 60 million euros.

Demonstrators besieged the Parliament building and clashes broke out as the riot police tried to keep people out of the building. The Spanish media said there were dozens of arrests and scores of injuries.

The challenges for Spain are evident and the unrest and dismay is sweeping across the regions and not only in the capital. In the latest challenge to Rajoy’s attempts to guide Spain out of the crisis Catalan President Artur Mas on Tuesday as well called early elections only five days after the Rajoy requested the president’s call for a bigger control of the nation’s tax revenue, especially as the richest region in Spain is in financial trouble itself.

Catalonia requested aid from the central government fund, with Valencia and Murcia and late on Tuesday were joined by Andalusia as they confirmed that the region will likely request 4.9 billion euros via the FLA Program, combining the total bailouts requested the amount increased to almost 14 billion euros of the 18 billion euros program which the government ensures will be available and enough to help regions meet their financial obligations.

The market remains tensed over the outlook for Spain, especially as Rajoy remains reluctant to officially request aid or tap the ECB to help lower borrowing costs. The public outrage over new austerity measures further puts Spain under question whether Rajoy’s government will be able to get Spain back on track.

The 2013 budget is the second for Prime Minister Mariano Rajoy to pass since he took office in December and with new austerity measures entailed Rajoy is struggling to win market confidence and the trust of his European counterparts amid public outrage.

Rajoy plans to cut the budget shortfall by more than 60 billion euros by 2014 and the recession is only expected to deepen, while a drop in tax receipts likely to restrict the nation from even meeting the tough austerity targets.

Tensed eyes are focused on Spain for the 2013 budget and new economic reforms that are due to be announced and demonstrations are not likely to stop any time soon as the public dismay increases over the tough economic conditions.