The clashes broke out as protesters tried to tear down barriers blocking access to the parliament in Madrid.
Spanish media reported that at least 20 people had been arrested and more than a dozen injured.
The protesters dispersed after MPs left the building.
The "Occupy Congress" protest came as the government prepares to unveil further austerity measures on Thursday.
It is attempting to shrink its budget deficit, with the country in its second recession in three years and unemployment near 25%.
The government will unveil the draft budget for 2013 on Thursday and is expected to present new cost-saving reforms to reassure lenders about the state of the country's public finances.
Emergency funds The demonstrators - known as Indignants - say "Occupy Congress" is a protest against the kidnapping of democracy.
Thousands of people massed in Plaza de Neptuno square in central Madrid for the march on parliament.
But their route towards the parliament building's main entrance was blocked off by metal railings, police vans and hundreds of Spanish riot police.
Pablo Mendez, an activist from the 15M Indignants movement,
told the Associated Press: "This is just a powerful signal that we are
sending to politicians to let them know that the Spanish bailout is
suicide and we don't agree with it, and we will try to prevent it
happening."
Another demonstrator, Montse Puigdavall, said: "I'm here because of the situation we are living in now, because of all the social cuts and rights that we have lost, that took a lot of hard work to achieve.
"So we are here because we're determined not to lose them."
Under Spanish law, people who lead demonstrations outside parliament that disrupt its business while it is in session may be jailed for up to one year, AFP says.
Clashes have broken out at previous rallies and marches against the cuts and at least 1,300 police were said to be on duty at the Congress building.
Continue reading the main story
Spanish media reported that at least 20 people had been arrested and more than a dozen injured.
The protesters dispersed after MPs left the building.
The "Occupy Congress" protest came as the government prepares to unveil further austerity measures on Thursday.
It is attempting to shrink its budget deficit, with the country in its second recession in three years and unemployment near 25%.
The government will unveil the draft budget for 2013 on Thursday and is expected to present new cost-saving reforms to reassure lenders about the state of the country's public finances.
Emergency funds The demonstrators - known as Indignants - say "Occupy Congress" is a protest against the kidnapping of democracy.
Thousands of people massed in Plaza de Neptuno square in central Madrid for the march on parliament.
But their route towards the parliament building's main entrance was blocked off by metal railings, police vans and hundreds of Spanish riot police.
The Coordinadora #25S manifesto reads: "Democracy has been kidnapped. On 25 September we are going to save it."
Another demonstrator, Montse Puigdavall, said: "I'm here because of the situation we are living in now, because of all the social cuts and rights that we have lost, that took a lot of hard work to achieve.
"So we are here because we're determined not to lose them."
Under Spanish law, people who lead demonstrations outside parliament that disrupt its business while it is in session may be jailed for up to one year, AFP says.
Clashes have broken out at previous rallies and marches against the cuts and at least 1,300 police were said to be on duty at the Congress building.
Continue reading the main story
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