>>nestor sanchez owns a graphic design company in barcelona and would like to take on 2 more people,but cannot because of restrictive regulations. >>sanchez: if suddenly you don't have work to do, it's not the same to carry out a redundancy plan in a big company as in a small one. >>reporter: that issue remains to be addressed, but elsewhere the government is taking action. public spending has been reduced by nearly 8%; 9 billion dollars of investment spending has been slashed and civil servants pay cut by 5%. the country also raised the retirement age from 65 to 67. >>austerity measures that prompted protests on the streets of madrid. >>illane: my personal situation isn't bad, but the situation for my daughter will be difficult. she is going to have to develop herself, to study like mad and yet she has no present and no future. >>reporter: and despite the reforms moody's downgraded spanish debt to aa2 in march. it's clear much more is needed to stop spain following portugal, ireland, greece, the so-called pigs, in getting a bailout from the eu and imf. >>reporter: if that happens the c