Παρασκευή 17 Δεκεμβρίου 2010

ATHENS - Police in the Greek capital fired teargas at protesters who threw petrol bombs at two luxury hotels in the central Syntagma Square outside Parliament yesterday, as protests against government austerity measures escalated.

Hours earlier, Parliament had approved reforms and spending cuts that are a condition of a €110-billion ($192-billion) European Union /International Monetary Fund bailout intended to dig Greece out of its debt crisis.

As an anti-austerity march of about 20,000 people reached Parliament, some 200 leftists attacked former conservative minister Kostis Hatzidakis with sticks and stones, shouting: "Thieves! Shame on you!"

Witnesses said his face was covered in blood as he took shelter in a building.

Yesterday's 24-hour general strike is the seventh this year organised by unions appalled at a wave of austerity policies meant to pull Greece out of its worst financial crisis since World War II.

Earlier yesterday, striking workers grounded flights, shut down schools and paralysed public transport - all air, rail and ferry services were cancelled, with many taxi drivers also walking off the job for hours.

Hospitals were working on skeleton staff and ministries shut down as civil servants and private sector workers stayed away.

Journalists also held a 24-hour strike, causing television, radio and Internet news blackouts, and Greek newspapers will not be published today.

Crippled by high budget deficits and a mountain of debt, Greece was saved from bankruptcy in May by a €110-billion international rescue loan package. In return, the government slashed pensions and salaries, hiked taxes, raised retirement ages and eased restrictions on private sector layoffs.

Prime Minister George Papandreou's Socialists cite the need to turn around loss-making public corporations while saving private sector jobs by allowing struggling businesses to cut costs, but Unions argue that the cutbacks are unfair and counter-effective.

"We need to send the government a message that we will not accept measures that lead us only to poverty and unemployment," said Mr Ilias Iliopoulos, general secretary at the civil servants' union ADEDY.

"After the vote late last night on the worst labour relations ever in Greece, we are warning of more action after the holidays. We will not yield, we will prevail."

Workers also rallied against austerity in other countries yesterday, including Spain and Belgium, ahead of a summit of EU leaders in Brussels today and tomorrow.