• 11:39
  • Tuesday ,28 June 2011
العربية

Greece debts: General strike held amid cuts debate

By-BBC

International News

00:06

Tuesday ,28 June 2011

Greece debts: General strike held amid cuts debate

A 48-hour general strike has begun in Greece, as parliament prepares for a key vote on tough austerity measures.

Large crowds of protesters are gathering on the streets, with public transport in Athens grinding to a halt.
On Monday, Prime Minister George Papandreou said only his 28bn-euro (£25bn) austerity programme would get Greece back on its feet.
If the government loses, the EU and IMF could withhold 12bn euros of loans and Greece could run out of money in weeks.
French President Nicolas Sarkozy has said French banks are ready to offer new 30-year loans to Greece when its current debts fall due.
He said other European countries whose banks had lent money to Greece were considering the same model to help prevent a default. But the UK denied it was pressing banks to "take a haircut".
'Massacre'
More than 5,000 police officers are due to be deployed in the centre of Athens on Tuesday morning, when tens of thousands of striking workers are expected to march towards parliament.
The general strike is disrupting or halting most public services, with doctors, ambulance drivers, journalists and even state-funded actors taking part.
Airports were to be shut for hours at a time, with air traffic controllers walking out between 0800 and 1200 (0500-0900 GMT) and 1800 and 2200 (1500-1900 GMT). Athens international airport displayed a number of flights being cancelled from 0730.
Trains, buses and ferries are also stopping operation.
In Athens, the metro will be the only form of public transport which will work "so as to allow Athenians to join the planned protests in the capital", metro drivers said.
The unions are angry that the government's austerity programme will impose taxes on those earning the minimum wage, following months of other cuts which have seen unemployment rise to more than 16%.
Some protesters have said they will encircle the parliament building to prevent MPs from entering. The austerity package and implementation law must be passed in separate votes on Wednesday and Thursday.
Polls suggest that between 70% and 80% of Greek people oppose the austerity plan.
"We're opposed to what they're trying to do to us," said bank worker Kali Patouna. "We know very well that these measures will be our tombstone. They will have extreme consequences for workers and for everyone on all social levels."
If the measures are passed, the next instalment of Greece's 110bn-euro bail-out will be released by the European Union and International Monetary Fund.
European officials will also start to finalise the details of a second bail-out - worth an estimated 120bn euros - designed to help Greece pay its debts until the end of 2014.
The BBC's Chris Morris in Athens says defeat for the government this week would send ripples of anxiety right across the eurozone, with Greece facing the prospect next month of becoming the first member state to default on its debts.
'Flawed' plans
As the debate in parliament on the austerity measures began, the prime minister warned a defeat would mean the national "coffers" would be empty within days and urged MPs to do their "patriotic duty".
"Our vote is the only chance for the country to get back on its feet."
Mr Papandreou added: "I call on Europe, for its part, to give Greece the time and the terms it needs to really pay off its debt, without strangling growth, and without strangling its citizens."
The new Finance Minister, Evangelos Venizelos, acknowledged that the cuts were "unfair" but said they were absolutely necessary.
He urged parties to work with the governing Panhellenic Socialist Movement (Pasok) because it would help build "greater national strength".
But the main opposition leader, Antonis Samaras of the New Democracy party, said the thinking behind the austerity package was flawed and that tax rates should be lowered rather than raised in order to stimulate the economy.
The outcome of the debate is uncertain. Mr Papandreou faces opposition from within Pasok, with two MPs saying they may oppose the bill.
The party has a slim majority, with 155 seats out of 300 in parliament.