Greece heads for further general strike

9 Mar 2010, 10:36 pm   -   Source: AAP
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Greek tax and garbage collectors walked off their jobs for a second day as the country braced for a second general strike against government austerity measures.

Greek tax and garbage collectors walked off their jobs for a second day on Tuesday as the country braced for a second general strike against government austerity measures.

Over a million civil servants, workers and private sector staff have been called upon to strike on Thursday by the country's two main unions and attend street protests.

The general strike, the second in two weeks, is likely to paralyse much of daily life across the country with ministries, public services, banks and schools shut down and hospitals running on reduced staff.

A support strike by sailors will tie up ships at harbour. Air and rail transport is also likely to be disrupted.

The unions are outraged by a wave of state spending cuts and tax rises intended to cut this year's deficit of 12.7 per cent of output and to get to grips with the country's debt of nearly E300 billion ($A449.71 billion).

"The government's measures pile further misery on the lowest wages in Europe, leading to prolonged recession and unemployment," the civil servants' union Adedy said in its strike call.

The spending cuts - including an unprecedented reduction in paid holiday allowances - constitute an effective salary reduction of between 20 and 30 per cent for civil servants, the union said.

A new poll late on Monday found that 65.3 per cent of Greeks believe the austerity measures to be unfair.

The Greek economy, which is mired in a recession, ran into more trouble on Tuesday when the national statistics agency reported an the annual inflation rate jumped by four points to 2.8 per cent in February.

Unemployment currently stands at over 10 per cent.

Greek Prime Minister George Papandreou, currently on an international tour to muster support for Greece's debt-cutting efforts, was scheduled to meet with US President Barack Obama later on Tuesday.

Papandreou has urged the United States to crack down on currency speculators amid reports that some US funds have placed big bearish bets against the euro.

"Unprincipled speculators are making billions every day by betting on a Greek default," he said in a public address on Monday.

The prospect of a possible Greek default has roiled global financial markets, putting pressure on the euro, and even raising questions about the long-term viability of European monetary union.

Papandreou's approval ratings remain high at home, with a poll Sunday showing 52 per cent of Greeks have confidence in his efforts to pull the country of its debt crisis.

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