Protestors march as they hold banners reading, 'No financial cuts' during a demonstration against regional government-imposed austerity plans to restructure and part-privatize health care sector in Madrid, Spain, Sunday, Dec. 16, 2012. Madrid proposes selling off the management of six of 20 public hospitals and 27 of 268 health centers. Spain's regions are struggling with a combined debt of ?145 billion ($190 billion) as the country's economy contracts into a double-dip recession triggered by a 2008 real estate crash. (AP Photo/Andres Kudacki)
Protestors march as they hold banners reading, 'No financial cuts' during a demonstration against regional government-imposed austerity plans to restructure and part-privatize health care sector in Madrid, Spain, Sunday, Dec. 16, 2012. Madrid proposes selling off the management of six of 20 public hospitals and 27 of 268 health centers. Spain's regions are struggling with a combined debt of ?145 billion ($190 billion) as the country's economy contracts into a double-dip recession triggered by a 2008 real estate crash. (AP Photo/Andres Kudacki)
MADRID (AP) ? Spain's prime minister is defending his conservative government's imposition of austerity measures during its first year in power, even as thousands of people protest in the streets.
Mariano Rajoy says "2012 will be remembered as the year in which we placed the foundations for our recovery" and added that he expected the economy to improve during the coming year.
Spain, with 25 percent unemployment, is battling to reduce its deficit and emerge from its second recession in three years.
Late Monday, demonstrations against cuts to education, health care and pensions were held in several Spanish cities. But the number of protesters fell well short of the hundreds of thousands the country's labor unions had called on to show up.
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