ROUGH CUT (NO REPORTER NARRATION)<br/> <br />STORY: Hundreds of Spanish civil servants protested outside the Treasury in Madrid on Tuesday to protest at cuts in their salary and perks.<br/> <br />They have been demonstrating daily throughout the country since Spain Prime Minister Mariano Rajoy announced new cuts last week.<br/> <br />Rajoy pledged 65 billion euros of savings from tax hikes and spending cuts in a painful package aimed at convincing the EU and investors his government is serious about reform.<br/> <br />Most of the money will come from changes to tax rates, including a 3 percentage point hike in value-added tax rates, and spending cuts.<br/> <br />Many civil servants feel that they are bearing the burden of the austerity measures. They face wage cuts, job reductions and the elimination of certain benefits.<br/> <br />The government says the unpopular reforms are necessary to put the country back on a path of growth and job creation.<br/> <br />Nearly one in four is unemployed in the country.<br/> <br />Spain's two largest unions pledged widespread action in September to protest the measures and the country's public sector workers have already called their own strike for September.
