Greece unrest: Athens clashes amid general strike

Clashes between riot police and protesters broke out in front of the parliament building in Athens

Greek riot police have fired tear gas and fought running battles with protesters, amid a 48-hour general strike that has paralysed the country.

Some protesters hurled petrol bombs and stones at the police, as a march by tens of thousands of people in central Athens turned violent.

Many Greeks are furious at austerity plans being discussed in parliament.

EU leaders and global finance chiefs have flown to Germany to discuss the eurozone crisis.

French President Nicolas Sarkozy will meet German Chancellor Angela Merkel and senior officials from the European Central Bank and IMF.

Greece is struggling to reduce a huge government deficit amid fears it may default and set off a crisis, engulfing other eurozone countries like Spain and Italy.

The EU and IMF have demanded tough cuts in return for two bailout packages, and their meeting in Frankfurt comes days before high-level EU talks on the crisis.

Gas masks

The Greek government has so far introduced one round of austerity measures.

Analysis

At stake here is not just whether the Greek parliament can get its legislation through. Seeing the vast numbers on the street, the government ministries occupied, the violence, it has to be asked whether Greece can impose these new austerity measures.

And if it can't, will the EU and IMF go ahead with the next tranche of bailout money? Without the next 8bn euros ($11bn; £7bn) Greece will soon find itself unable to pay its bills.

But the mood has hardened here. There is less fear of default. We are not there yet but the question may have to be faced: what happens if a eurozone country refuses to take the medicine?

Parliament is due to vote on Wednesday and Thursday on a further round, including plans for temporary lay-offs of thousands of public sector workers.

The pace of protests in Greece has been increasing for several weeks, with lightning strikes across virtually every sector of the economy.

The latest strike was accompanied by huge rallies across the country organised by trade unions, who say the demonstrations are the largest this year.

More than 70,000 people gathered in Syntagma Square in central Athens, and thousands more in cities across the country.

But outside parliament in Athens, hundreds of riot police faced off against large groups of youths, and angry clashes followed.

Protesters threw smoke grenades, petrol bombs, bricks and stones at police, and fought scuffles and running battles with officers.

Some of the youths were wearing gas masks, others had scarves wrapped around their faces.

The police responded by firing stun grenades and tear gas as they formed a defensive ring around the parliament building.

'Taxation Armageddon'

The strike for Wednesday and Thursday was called by the two big unions that cover public and private sector workers.

Vote: Key Points

  • New pay and promotion system covering all 700,000 civil servants
  • Further cuts in public sector wages and many bonuses scrapped
  • Some 30,000 public sector workers suspended, wages cut to 60% and face lay off after a year
  • Wage bargaining suspended
  • Monthly pensions above 1,000 euros to be cut 20% above that threshold
  • Other cuts in pensions and lump-sum retirement pay
  • Tax-free threshold lowered to 5,000 euros a year from 8,000

Government departments, businesses, offices and shops have all shut, with small business owners and shopkeepers taking part in strike action for the first time.

Air traffic controllers are staging a 12-hour walkout, with some 150 domestic and international flights cancelled. Trains, buses, taxis and lorries are not operating.

One striker, university lecturer Yannis Zabetakis, told the BBC: "We are now living in a taxation Armageddon and the economy is dying. Along with the economy, we are dying. The austerity measures are not working and our best people are being forced to go abroad."

The BBC's Chris Morris in Athens says the mood across the country is generally one of defiance rather than violence.

Legislators are voting on two bills on Wednesday and Thursday.

They include measures for higher taxes, further cuts to pensions and salaries and the suspension of collective labour agreements.

They will also suspend 30,000 public servants on reduced pay and introduce a new civil service salary system.

'Agonising struggle'

Prime Minister George Papandreou's Pasok party has a four-seat majority but some of his backbenchers have threatened to vote against the measures.

Graphic

Finance Minister Evangelos Venizelos, who has this month been locked out of his office by protesting civil servants for several days, appealed for support, saying: "We are in an agonising but necessary struggle to avoid the final and harshest point of the crisis."

Greece finds itself with rising unemployment and a stalled economy, saddled with a government debt that is 162% of its gross domestic product.

The long-term bond markets have shut Greece out over fears that it can no longer meet its debt obligations.

The EU and the IMF have stepped in with two rescue packages, but the second has not been finalised and the first has not yet been fully paid.

Greece says it needs the next $11bn (£7bn; 8bn euros) instalment from the first package or it will run out of money to pay its bills in November.

As part of the second bailout agreed to in July, Greece's creditors agreed to a 21% loss - or "haircut" - on their loans to Athens, but there are suggestions this may not be enough.

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