Protesters massed in the Plaza de Cibeles in front of City Hall, waved Spanish flags, called on Prime Minister Pedro Sanchez to resign and shouted out "traitor".
The country, which represents the "S" in "PIIGS," a term coined as a catch-all for Europe's most troubled economies, is growing at its fastest pace in seven years—3.1 percent in the second quarter. Of the other PIIGS—Portugal, Italy, Ireland and Greece—only Ireland is growing faster.
Justin Harper, head of research of IG Markets tells CNBC-TV18 that the sharp corrections witnessed in global markets has investors entering the field again to pick up some solid companies which are available at a discounted price.
In the euro zone's simmering debt crisis, the Battle of Spain will likely be decisive in 2011.