Spain will unveil a raft of austerity measures in its annual budget later as it tries to keep within stringent deficit targets.
Newly-elected Prime Minister Mariano Rajoy has already warned the budget will be "very austere".
Markets are becoming increasingly concerned that Spain's debts are becoming unmanageable.
The budget comes a day after widespread strikes across the country over labour reforms designed to cut unemployment.
Road, rail and air transport were all affected, with domestic and European flights cut to a fraction of their normal levels.
The budget comes on the same day that eurozone finance ministers meet in Copenhagen to discuss the bloc's bailout fund, designed to protect itself against individual members being unable to repay their debts.
However, analysts say long-standing differences between some members, in particular France and Germany, mean there is no guarantee an agreement will reached.
In January, Mr Rajoy outlined 8.9bn euros ($11.8bn; £7.4bn) in new budget cuts, as well as tax increases designed to raise 6.3bn euros.
However, in order to meet a strict EU deficit target of 5.3% of total economic output, Madrid needs to make further cuts.
They are also needed to keep borrowing costs, which have crept higher in recent weeks, at a manageable level.
"To [achieve this deficit target] it will be necessary to cut spending and/or raise taxes by some 55bn euros," said Angel Laborda at the Savings Bank Foundation.
Spending cuts at a time of weak economic growth are proving deeply unpopular.
In fact, the Bank of Spain said this week the country's economy has returned to recession, after contracting in both the final quarter of last year and the first three months of this year.
Spain also has the highest unemployment rate in Europe at 23%, with more than half of young people out of work.
The government has introduced legislation designed to free up the labour market, but this has only succeeded in fuelling public anger.
The legislation, approved last month, makes it easier for companies to fire employees and reduces maximum severance pay.
It was these measures that sparked Thursday's mass demonstrations across the country.
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