The far-left Spanish party, Podemos, is holding a mass rally in the centre of Madrid looking to build on the recent victory of Syriza in Greece.
Tens of thousands are reported to be attending the "March for Change" - one of its first outdoor mass rallies.
Podemos has surged into the lead in recent opinion polls, and says it will seek to write off part of Spain's debt if it wins elections later this year.
Podemos says politicians should "serve the people, not private interests".
The BBC's Tom Burridge in Madrid says that there has been an impressive turnout and a carnival atmosphere at the rally.
Protesters are parading in the same streets that have seen many other gatherings against financial crisis cutbacks imposed by successive governments over the last six years.
Uncompromising messageMany Spaniards are enraged over reports of political corruption and public spending cuts implemented by the governing People's Party and before that by the Socialists.
The two big traditional parties have described the party - less than a year old and whose names translates as "we can" - as populist.
Our correspondent says that since Podemos stormed onto the political scene in last May's European elections, it has moved from strength to strength with its uncompromising message against austerity and corruption.
Podemos is a close ally of Syriza and their policies are as radical.
By rallying its supporters today to Spain's famous Puerta del Sol square, the party hopes to send a signal to Spain's traditional parties - and the rest of Europe will be watching, our correspondent says.
Prime Minister Mariano Rajoy warned Spaniards not to "play Russian roulette" by supporting the newcomer, which he said "promises the moon and the sun" but cannot deliver them.
Left-wing and right-wing media have criticised Podemos, accusing it of having ties with Venezuela's left-wing leaders and alleging financial misconduct by some of its senior members.
The party's leaders have in response promised to publish their tax returns, with Mr Iglesias remaining defiant.
"In the face of their hatred, we smile," is one of his regular pronouncements, according to the AFP news agency. After the Syriza triumph in the Greek elections he said that "hope had been born".
Spain has now officially come out of recession but nearly one in four workers remains unemployed.
Last year was the first time there has been full-year economic growth in the country since 2008, when a property bubble burst, putting millions of people out of work and pushing the country to the brink of a bail-out.
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