Hundreds of thousands of people across Europe joined demonstrations or went on strike yesterday as they demanded governments stop cutting benefits and create more employment.

We must nevertheless do what is necessary- Merkel

Those with jobs and without spoke of a “social emergency” crippling the world’s largest economic bloc, the EU.

The protests were met with tear gas in Italy and Spain, but were largely limited to the countries hardest hit by the austerity measures designed to bring government spending into line with revenues. Wealthier nations like Germany, the Netherlands and Denmark saw only small, sedate demonstrations.

Governments backing the line of stringent austerity were not impressed by the show of force.

“We must nevertheless do what is necessary: break open encrusted labour markets, give more people a chance to work, become more flexible in many areas,” German Chancellor Angela Merkel said. “We will of course make this clear, again and again, in talks with the unions.”

Spanish Economy Minister Luis de Guindos spoke of “a long crisis that has meant sacrifice and uncertainty,” but said: “The government is convinced that the path we have taken is the only possible way out.”

To combat a three-year financial crisis over too much sovereign debt, governments across Europe have had to raise taxes and cut spending, pensions and benefits.

As well as hitting workers’ incomes and living standards, these measures have also led to a decline in economic output and a sharp increase in unemployment.

The 17-country eurozone is expected to fall into recession when official figures are released today. Unemployment across those countries has reached a record 11.6 per cent, with Spain and Greece seeing levels above 25 per cent.

With no end in sight to the economic hardship, workers were trying to take a stand.

“There is a social emergency in the south,” said Bernadette Segol, secretary general of the European Trade Union Confederation. “All recognise that the policies carried out now are unfair and not working.”