Spain is set to unveil new measures later aimed at reviving the economy, a day after unemployment in the country hit another record.
Many economists believe the proposals will focus less on austerity and more on stimulus measures.
The news will be watched closely amid a growing debate in Europe about whether austerity plans should be reined back.
Prime Minister Mariano Rajoy’s government is due to unveil the economic reforms at 1200 GMT.
Spain saw violent anti-austerity protests on Thursday, with police reporting a number of injuries and the arrest of people suspected of planning to burn down a bank.
This came on the day official figures showed that unemployment in the eurozone’s fourth largest economy topped 27% in the first quarter of 2013. Unemployment reached 57.2% among people under 25 years old, the National Statistics Institute said.
Structural reforms
With Spain’s housing bubble burst and the economy contracting, Mr Rajoy’s conservative Popular Party swept to power in a landslide general election win in November 2011.
The government has reformed the labour laws to make it easier to hire and fire workers, and imposed tough austerity measures to cut the deficit and save the country 150bn euros ($195bn; £126bn) by 2014.
The economy contracted by 1.37% last year, the second-worst annual decline since 1970. The government forecasts that it will shrink again by between 1% and 1.5% this year.
There have been widespread reports that Friday’s measures will focus on structural reforms rather than more spending cuts.
These may include changes to the public pension system to speed up a planned rise in the retirement age, and an end to inflation-linked reviews of pension payments.
There may also be a review of unemployment benefits and measures to boost small business growth.
Spain is negotiating with European policymakers for more time to reduce its spending gap, with a decision expected by the end of May.
