A Dire Financial Situation For The Sherry Capital Of Spain 05:02
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Demonstrators march with union flags as a police officer stand beside them during a general strike in Pamplona, northern Spain, Thursday. (AP)
Demonstrators march with union flags as a police officer stand beside them during a general strike in Pamplona, northern Spain, Thursday. (AP)

There's a general strike in Spain today, as unions protest government austerity plans. Spain has the highest unemployment rate in the European Union and it's under pressure to reduce its deficit and bring public finances under control.

The government is expected to announce more spending cuts tomorrow.

Spain's precarious economic situation has filtered down to local governments. The city of Jerez in Andalusia, known as the Sherry capital of Spain, is in bad shape. It has years of unpaid bills — and many of its workers haven't been paid in months. The BBC's Tom Burridge has a report.

This segment aired on March 29, 2012.

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