Greece, third general strike..[ 721 ]

Greece hit by third general strike in a month

Air traffic controllers have closed Greece's airspace for 24 hours BBC ,07:24 GMT, Thursday, 11 March 2010Public services and transport in Greece have ground to a halt as workers stage a third general strike in protest at the government's austerity measures. Flights are grounded, and schools and hospitals closed in the 24-hour walk-out called by the 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. The country currently has a spiralling public deficit of 12.7%, more than four times higher than eurozone rules allow. The government has pledged to cut this to 8.7% this year, and also reduce the 300bn-euro ($409bn; £273bn) national debt, by cutting public sector salaries, raising the average retirement age, and increasing sales taxes. 'Deep freeze' Strikes and violent demonstrations have erupted since the measures were announced last month. Between bankruptcy and recession, between the devil and the deep blue sea, there is no other alternative to the abyss Dimitris Daskalopoulos Greek employers' association In the latest action, 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 five million workers. Unions say the European Union-backed austerity plan will only hurt the poor and aggravate the recession-hit country's economic problems. "They are trying to make workers pay the price for this crisis," GSEE leader Yiannis Panagopoulos told the Associated Press. "These measures will not be effective and will throw the economy into deep freeze." GREEK FINANCIAL CRISIS Deficit: 12.7% of output, four times higher than EU limit Debt: 300bn euros (£275bn; $410bn) Unemployment: 10% Inflation: 2.8% Flanders: Advantage Greece Q&A: Greece's economic woes Why Greece's problems matter Potential rebels within the governing Socialist party who have objected to the belt-tightening have been forced to toe the official line, says the BBC's Malcolm Brabant in 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. "Between bankruptcy and recession, between the devil and the deep blue sea, there is no other alternative to the abyss," he told reporters. "It is necessary to start again and to reform the country." Budget crunch Demonstrations are planned in Athens and other major cities. Last Friday, Athens saw its most serious unrest since the financial crisis began, as MPs approved the government's austerity measures. Unions say the EU-backed austerity plan will only hurt the poor Rock-throwing protesters outside parliament clashed with police, who used tear gas to disperse them. Another general strike has been called for 16 March. By spring, Greece must refinance a large chunk of its national debt or risk defaulting on its loans. Concerns about its giant debts currently make it more expensive for Greece to borrow money compared with most other European nations. Greek Prime Minister George Papandreou is seeking assistance from fellow eurozone nations to make it cheaper to borrow funds on the international financial markets. European Union leaders have pledged to help Greece, but have not outlined any concrete measures. During a visit to Washington on Tuesday, Mr Papandreou also appealed to US President Barack Obama to crack down on speculators, who he said were trying to undermine Greece. "It is very important to stabilise international markets and to not allow the crises that may occur... to be used to create wider destabilisation, either of the eurozone or of the world financial system," he said.