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Wednesday, 19 October 2011 - Strike shuts down Greece before austerity vote |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? 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Greek journalists Argyro Lytra (R) and Manolis Kipreos hold their hands in the air during a march by striking Greek journalists in central Athens October 18, 2011. Greek ships were harboured and garbage rotted in the streets of Athens on Tuesday as angry workers built momentum for ''the mother of all strikes'' expected to bring the country to a halt in protest against a new package of tax hikes and wage cuts. Credit: Reuters/Yannis Behrakis By Lefteris Papadimas and Renee Maltezou ATHENS | Wed Oct 19, 2011 3:27am EDT ATHENS (Reuters) - Greek unions began a 48-hour general strike on Wednesday, the biggest protest in years, as parliament prepared to vote on sweeping new austerity measures designed to stave off a default that could trigger a crisis in the wider euro zone. The strike shut government departments, businesses, public services and even providers of everyday staples like shops and bakeries and will culminate in mass demonstrations outside parliament, the scene of violent clashes in June. Some 400 dock workers gathered at the entrance of Greece's main port Piraeus in the morning and about 1,000 prison guards met outside the Justice Ministry ahead of bigger rallies scheduled for 0800 GMT. Air traffic controllers decided to soften their labor action to reduce its impact on passengers and stop work for 12 hours instead of 48. They were due to resume work at 0900 GMT. "Since midnight until Wednesday noon, 150 domestic and international flights - arrivals and departures - have been canceled, while 16 flights have been rescheduled," an Athens airport spokeswoman told Reuters. "So far, everything is quiet at the airport." The industrial action comes as European Union leaders scramble to set the outlines of a new rescue package in time for a summit on Sunday that hopes to agree measures to protect the region's financial system from a potential Greek debt default. Prime Minister George Papandreou made a final appeal for support late on Tuesday, comparing the situation facing Greece to a war and telling deputies in the ruling PASOK party that it was their duty to support the tough new measures. "We must persevere in this war as people, as a government, as a parliamentary group in order for the country to win it," Papandreou said. "We will win for the country, we will persevere. That is why I'm here." Papandreou's narrow four-seat majority is expected to be enough to ensure the bill goes through, especially given possible support from a smaller opposition group. But party discipline has come under increasing strain and one PASOK deputy resigned his seat in protest on Monday. At least two others have also threatened to vote against part of the package dealing with collective wage bargaining agreements. Greece has had a foretaste of the protest over recent days as a succession of smaller strikes has left garbage piled in the streets of Athens, closed tourist monuments including the Parthenon and seen government departments including the finance ministry occupied by strikers. "We are going to send a loud message to the government and the political system," said Costas Tsikrikas, head of Greece's largest public sector union, ADEDY, which is organizing the strike with its private sector counterpart GSEE. "We believe participation will be huge," he said. "BLACKMAIL" Trapped in the third year of deep recession and strangled by a public debt amounting to 162 percent of gross domestic product which few now believe can be paid back, Greece has sunk deeper into crisis, despite repeated doses of austerity. European leaders are hoping to secure a rescue deal including new steps to reduce Greece's debt, strengthening the capital of banks with exposure to troubled euro zone countries and leveraging a euro zone rescue fund to prevent market contagion to bigger economies. Papandreou promised to resist pressure from the streets and prove Greece's determination to save itself. "All these people who are blackmailing and holding up the whole country, by occupying buildings, filling streets with rubbish, shutting down ports, the Parthenon, have to explain to us whether this is helping us stand on our feet," he said. The austerity package mixes deep cuts to public sector pay and pensions, tax hikes, a suspension of sectoral pay accords and an end to the constitutional taboo against laying off civil servants. A first vote, on the overall bill, will be held on Wednesday night, with a second vote on specific articles expected some time on Thursday. "None of my colleagues - who have been through a lot lately - will risk letting the country fall from our hands and break, go bankrupt," Development Minister Mihalis Chrysohoidis told Mega TV on Wednesday, saying parliament would pass the bill. International lenders, who are providing the funds Athens needs to stay afloat after it was shut out of bond markets last year, have expressed impatience at the slow pace of reform as Greece has slipped behind on its budget targets. There has been growing talk that Athens should be placed under tighter supervision by EU authorities to ensure it meets its reform obligations. Squeezed between escalating popular protests against the cuts already imposed and demands from the EU and International Monetary Fund for even tougher action, Papandreou's support has appeared increasingly uncertain. Although the government has repeatedly ruled out early elections, many political analysts now believe that a snap ballot will probably be held some time in the coming months. Papandreou met Antonis Samaras, head of the conservative New Democracy party, late on Tuesday but failed to garner any support ahead of the vote. "It is obvious who is actually torpedoing the national unity," Samaras said. "With someone who is really interested in the unity of the Greek people in this crisis, I would have many things to say. But I have nothing to say with someone who is in panic and taunts everyone." (Additional reporting by Tatiana Fragou and Daphne Papadopoulou; Writing by James Mackenzie and Ingrid Melander; editing by Philippa Fletcher) World Greece Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) JamesDrouin wrote: Spoiled children stamping their feet / holding their breath if ‘they don’t get their way’. Oct 19, 2011 2:48am EDT  --  Report as abuse See All Comments » Add Your Comment Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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