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Police
have fired tear gas at demonstrators in central Athens as clashes broke
out during a large protest march against government austerity measures,
AP reports.
Police clashed with scores of violent protesters who
hurled rocks and plastic bottles near parliament, but the violence
remained fairly limited.
More than 30,000 protesters took part in the march
Wednesday, as unions staged a general strike which grounded flights,
shut schools and crippled public services in a show of strength against
the government austerity measures.
The 24-hour walkout comes amid reports Greece is
considering tougher austerity measures, including deeper salary cuts and
drastic reforms of the civil service and pensions system, to pull the
debt-ridden country out of financial crisis.
Chanting "Billions for the rich, but nothing for us,"
demonstrators marched to parliament, as riot police maintained a
discreet presence.
Police pushed back a small group of marchers who
pelted them with plastic water bottles, but the incident ended quickly.
Musician Dimitris Petridis, banging a snare drum
along with colleagues to a funereal rhythm, said a spike in unemployment
had hurt business.
"We're all here for the same reason: the measures the
government is taking. They have to listen to us," Petridis said, while
keeping up the drum beat. "The rise in joblessness has really hurt us.
The daily wage for working at a nightclub, for many of us, is the same
as it was 20 years ago."
Demonstrations, part of the first general strike held
by unions since the center-left government's election in October, were
held also in cities across Greece.
Wednesday's strike grounded all flights at Greek
airports and left trains and ferries idle. Commuters in Athens were left
without most forms of public transport. State-run schools, tax offices
and municipalities were all closed, while public hospitals used
emergency staff. Journalists also held a 24-hour strike.
The country's two largest umbrella labor groups, the
private sector GSEE and public sector ADEDY, fiercely oppose a wave of
belt-tightening measures announced over the past weeks to reduce the
bloated budget deficit from 12.7 percent of gross domestic product to
8.7 percent this year.
"If all these measures are enforced, unemployment
will skyrocket. Our country will enter a massive recession and
unemployment will reach a Europe-wide record," GSEE spokesman Stathis
Anestis said.
"This will be tragic because it will provoke social
(unrest) and clashes."
Greek unemployment hit a five-year high of 10.6
percent in November 2009, up from 9.8 percent in October. The country's
woes have affected confidence in the euro as a common currency, and
hiked the country's borrowing costs.
The governing Socialists have frozen civil service
wages and hiring while cutting bonuses, hiking consumer taxes and
raising retirement ages.
Greek borrowing rates nevertheless remained high on
Wednesday, reflecting market worries of a default. Spreads on government
bonds over their German equivalent was at 330.1 basis points after
Fitch ratings agency on Tuesday downgraded ratings for four Greek banks.
Shares on the Athens Stock Exchange were up 0.49
percent in early afternoon trading.
Greece is facing a March 16 deadline from the
European Union to show signs of fiscal improvement and is under pressure
to take additional measures. These could include a hike in the Value
Added Tax, currently at 19 percent, and further civil service bonus
cuts.
Greece's central bank governor George Provopoulos
said in a speech Tuesday that Greece's crisis heightened a pressing need
for major economic reforms.
"The crisis could present an opportunity to carry out
necessary reforms -- and not just have a debate about them -- given
that not implementing these reforms would have a great price."
Wednesday's strike will be a crucial test of support
for the unions, with polls showing strong public support for the
government's austerity plan.
A poll Sunday in the Ethnos newspaper showed some
57.6 percent of Greeks believe measures taken so far are "in the right
direction," while 75.8 percent think unions should show restraint until
the end of the crisis.
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