Greece hit by second strike in one month

Public and transport services in Greece have ground to a halt as workers stage a second general strike in protest at the government’s austerity measures.

Flights are grounded, and schools and hospitals closed in the 24-hour strike called by Greece’s two largest unions.

The government says it sympathises with public anger over tax rises and wage cuts, but is refusing to back down.

The head of the employers’ federation has accused the strikers of trying to make Greece into a charity case.

Greece’s deficit currently stands at 12.7%, more than four times higher than the 3% limit set for the 16 European nations that use the euro.

As a result, the government has initiated a number of austerity measures, which include cutting civil servants’ pay, freezing pensions, and raising sales taxes.

Airport shut

Strikes and violent demonstrations have erupted since the measures were announced.

In the latest strike, air traffic controllers have closed the country’s airspace for 24 hours and ferries are stuck in harbours as maritime unions join the strike.

Officers from the police, fire and customs services are also due to join the street protests.

Buses and trams will not operate in Athens or the second city of Thessaloniki throughout the day.

The strike is being organised by the private sector union GSEE and its public sector sister union ADEDY, who together represent half of the country’s 5 million workforce.

The unions say the EU-backed austerity plan will only hurt the poor and aggravate the recession-hit country’s economic problems.

Potential rebels within the governing socialist party who have objected to the belt tightening have been forced to toe the official line, the BBC’s Malcolm Brabant reports from Athens.

Dimitris Daskalopoulos, the head of Greece’s employers’ association, denounced the street protests in his first major public pronouncement.

He said the government had no alternative but to reform the country and accused strikers of wanting to maintain the deplorable conditions that had forced Greece to look for charity from foreign markets.

Budget crunch

Last Friday, Athens saw its most serious unrest since the financial crisis began, as MPs passed the austerity measures.

Rock-throwing protesters outside parliament clashed with police, who used tear gas to disperse them.

Another general strike is called for 16 March.

Greece’s debt is about 300bn euros ($419bn; £259bn).

By spring, the country must refinance a large chunk of that debt or risk defaulting on its loans.

The Greek parliament has approved a package of austerity measures to save 4.8bn euros ($6.5bn; £4.4bn) in an effort to reduce its deficit from 12.7% to 8.7% during 2010.

Concerns about its giant debts currently make it more expensive for Greece to borrow money compared to most other European nations.

Greek Prime Minister George Papandreou is seeking assistance from fellow EU nations to make it cheaper to borrow funds on the international financial markets.

EU leaders have pledged to help Greece, but have not outlined any concrete measures.

Source: BBC

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