STEVE INSKEEP, HOST:

This morning, Spain's prime minister announced new tax hikes, salary cuts and spending cuts aimed at saving about 80 billion dollars. Those changes are the terms of Spain's financial bailout. The changes are also bad news for people who rely on unemployment benefits and other government programs. Lauren Frayer reports from Madrid on a family of nine that has been surviving on benefits and on one salary.

LAUREN FRAYER, BYLINE: With a quarter of Spaniards out of work, more parents pick up their kids from school themselves in the middle of what would have been a workday.

UNIDENTIFIED WOMAN: Chica, it's OK.

FRAYER: Fathers like Jose Ramon Fernandez, retrieving 9-year-old Maria Carmen, one of his five kids. Walking up to the school, he explains how he lost his construction job a year ago.

JOSE RAMON FERNANDEZ: (Through Translator) Construction used to fuel this country, but it's gone, along with my job. After work, we all used to go for a beer. Without customers, the bar with five employees had to lay off two of them. That's how the crisis spreads.

FRAYER: Jose's wife, Tania Maroto, is here pushing a stroller with her 5-month-old and also a wheelchair. Tania hasn't worked in 15 years, since their eldest daughter Bella was born with a neurological disorder.

TANIA MAROTO: (Through Translator) I have five kids, and my daughter is disabled, so it's virtually impossible for me to work outside the home.

FRAYER: And thanks to government aid, she doesn't have to. The state recognizes that Tania is the primary caregiver for her disabled daughter, and sends a monthly check for the girl's expenses.

When Jose lost his job, the family thought they'd have to move to a cheaper apartment. His unemployment check can't cover the rent. But the government stepped in again, taking over their lease. They qualify because of their lack of income and their daughter's disability - they need an elevator. So the state pays their rent, and also gives about $700 a month in spending money. Unemployment compounds this family's troubles, but it doesn't leave them in the street. They certainly don't live in luxury - an 800-square foot apartment for seven people. Tania's parents are next door, and her father's factory paycheck is the only salary for all nine of them. Without government benefits, Tania says they'd never get by.

MAROTO: (Through Translator) What my father earns should be to cover my parents' needs. Whenever they're able to help me, they do, and I do the same for them. But we'd never arrive at the end of the month with enough money for all of us.

FRAYER: The safety net that Tania and Jose rely on is the heart of Europe's post-war welfare state, and there are fears that it's now being chipped away. Seniors will soon have to fork over a small co-pay for medicines. But virtually free health care, benefits for the elderly and disabled, plus unemployment are largely untouched in Spain, at least so far.

Another aspect key to Spain's economic survival is the family unit. Like Tania, who lives next door to her parents, it's not uncommon for kids to live with their parents or grandparents well into adulthood - in good times and in bad. Those close family ties help the country cope with 25 percent unemployment, and double that rate for young people, says economist Gonzalo Garland, at Madrid's IE Business School.

GONZALO GARLAND: Either one member of a family supports, but sometimes even grandparents with their pensions are supporting families where none have employment. So there's this family network, let's say, that also tends to alleviate to some extent the impact of very high unemployment.

(SOUNDBITE OF SCHOOL CHATTER)

FRAYER: As, Jose and Tania walk from school to school, picking up one kid after another, they try to count - with a little help from 9-year-old Maria Carmen - how many of their other relatives have work.

FERNANDEZ: (Through Translator) Right now, the vast majority of us are unemployed.

FRAYER: One salary for nine people is not typical. But it's also not as rare as you might think. Government figures show one-and-a-half million Spanish households are without a single wage-earner. That's in a country of about 47 million people. So most Spaniards probably know at least one family that's getting by like this.

(SOUNDBITE OF CAR BUS)

FRAYER: With all five kids now in tow, Jose and Tania lift Bella's wheelchair onto a city bus. The family is heading to a restaurant they've heard is hiring. Jose goes in to inquire about a kitchen job, but then comes back out dejected.

(SOUNDBITE OF DOORS SLAMMING)

FRAYER: Turns out it was just a rumor. No jobs here. But Jose manages to look on the bright side.

FERNANDEZ: (Through Translator) At least I have time for my kids. I can spend the whole day entertaining them.

FRAYER: For NPR News, I'm Lauren Frayer in Madrid.

(SOUNDBITE OF MUSIC)

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