Merkel confronts Greek austerity anger

10 Oct 2012, 7:18 am   -   Source: AAP
Police clashed with protesters on the streets of Athens during a visit by the German Chancellor. (AAP)

Police clashed with protesters on the streets of Athens during a visit by the German Chancellor. (AAP)

Police have fired tear gas on the streets of Athens to disperse protesters as German Chancellor Angela Merkel visits the eurozone's most indebted nation.

Police have fired tear gas to disperse protesters attempting to storm a barricade near parliament as tens of thousands of Greeks massed in Athens in a show of anger against German Chancellor Angela Merkel.

Vilified for Greece's punishing spending cuts, Merkel, the leader of Europe's paymaster, is on her first visit to the eurozone's most indebted nation since the debt crisis erupted almost three years ago.

As she met Greek Prime Minister Antonio Samaras, demonstrators gathered just a few blocks away, some brandishing banners reading "You are not welcome, Imperialisten Raus" (Imperialists out)" or "No to the Fourth Reich".

Two Nazi flags were draped on the steel fence near parliament and set on fire. Sporadic violence also broke out, with small gangs of masked youths throwing bottles at riot police.

Thousands of police were out on the streets and key parts of central Athens were closed off to create a large security zone for Merkel's meetings with Samaras and President Carolos Papoulias.

Police said about 25,000 protesters had already streamed on to the central Syntagma Square, which lies outside the lockdown zone.

Merkel, the head of Europe's largest economy and the continent's paymaster, has been a champion of tough budgetary discipline.

She has become a hate figure in Greece over the tough spending cuts imposed on the country in return for multi-billion dollar aid packages.

She has even been depicted as Adolf Hitler in Greek tabloid caricatures.

The visit comes at a crucial time for Athens which is locked in negotiations with its international creditors over a 13.5 billion euros ($A17.33 billion)- package of further cuts in order to win further bailout funds.

Christina Vassilopoulou, a 37-year-old teacher in the impoverished Athens district of Agios Panteleimon, said she had turned up to protest "the decisions taken at European meetings where Merkel manipulates the participants".

"I have a doctorate and I make 900 euros a month, 400 less than before. We have children that go hungry and most of the parents are unemployed," she said.

Merkel's office and the Greek authorities are selling her visit as a gesture of solidarity and encouragement for the country's reform efforts, but many in Greece said the trip only served to fan anger.

Online hackers group Anonymous said it had attacked a number of Greek government sites.

"We, as Anonymous, are next to the Greeks claiming their freedom. We are next to a people who have fought against the German occupying forces," it said.

Vana Koronaiou, a shop owner selling German-made handbags near Syntagma Square, said: "This visit pours oil on the fire.

"If she wanted to help, she should have done it sooner," she told AFP.

Samaras is holding talks with Merkel before a joint press conference. The German chancellor will then meet Papoulias and a delegation of Greek and German businessmen before departing in the evening.

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