The threat of further strikes loomed in Italy on Tuesday after the first of a series of planned walkouts were staged over austerity measures.

Financial markets appeared nervous as workers held nationwide rallies on Monday to push for changes to government policies.

Thousands of union members protested against tax increases and spending cuts in cities across Italy, including Rome, Turin and Bologna.

After talks with Prime Minister Mario Monti on Sunday, union leaders complained that their demands were not being take seriously.

"The final result was completely unsatisfactory," said Luigi Angeletti, leader of the Italian Labor Union (UIL).

Protesters carried banners calling for the rich to be made to pay more taxes

"We are facing an extremely grave social situation," said leader of the Italian General Confederation of Labor (CGIL), Susanna Camusso.

The strikes on the Monday ranged from walkouts at Fiat car plants to a strike at Milan's famous La Scala opera house, which led to the cancellation of a play.

Public sector and banks to strike

Public transport leaders have called for walkouts on Thursday and Friday, with other public sector workers set to take action on Monday next week. Bank workers have also called a strike for Friday.

Union leaders complain that government plans would have an unfair impact on workers and pensioners and did not hit the wealthy hard enough.

A 300-strong crowd of union members protested outside parliament, calling for plans to be altered.

Amid uncertainty about Italy's ability to deal with its debts, stocks closed down 3.79 percent. However, the Italian government was able to raise 7.0 billion euros ($9.3 billion) in an auction of 12-month bonds.

A vote for the austerity plan is planned in the lower house this week, before going to be considered by the upper house.

All political parties - except the populist Northern League - have voiced support for Monti's efforts and the plan is likely to be adopted.

Author: Richard Connor (AFP, dpa)

Editor: Andreas Illmer