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Full Article Follow Reuters Facebook Twitter RSS YouTube Read Service sector growth slows, employment mixed | 2:23pm EDT India launches "world's cheapest" tablet computer 9:40am EDT Apple stumble seen opening door for rivals | 9:29am EDT Clashes in Athens as workers strike against cuts | 2:12pm EDT Exclusive: Microsoft considers bidding for Yahoo 4:23pm EDT Discussed 343 Exclusive: Democrats push tax hikes first in deficit talks 222 About 400 arrested in Wall Street protest 130 Senate takes first step on China yuan bill Watched Universe speeding up discovery wins Nobel Physics Tue, Oct 4 2011 Knox arrives in Seattle, says "thank you" Tue, Oct 4 2011 New iPhone fails to impress Tue, Oct 4 2011 Clashes in Athens as workers strike against cuts Tweet Share this Email Print Related News UPDATE 5-Clashes in Athens as workers strike against cuts 10:53am EDT Greek state workers take to streets to fight cuts 6:10am EDT EU preparing bank rescues amid Greece doubts Tue, Oct 4 2011 Greek strike to cause public sector chaos Tue, Oct 4 2011 Greek government urges unity, protesters defiant Tue, Oct 4 2011 Analysis & Opinion Occupy Wall Street’s message: more than a sound bite Another day, another protest? Related Topics World » Greece » Related Video Clashes in Athens amid anti-austerity strike 12:02pm EDT 1 of 12. A riot policeman punches Greek photojournalist Tatiana Bolari during a demonstration in Athens' Syntagma (Constitution) square October 5, 2011. Credit: Reuters/Yannis Behrakis By Renee Maltezou and Yannis Behrakis ATHENS | Wed Oct 5, 2011 2:12pm EDT ATHENS (Reuters) - Riot police fired teargas at stone-throwing youths in central Athens on Wednesday as thousands of striking Greek state sector workers marched against cuts the government says are needed to save the nation from bankruptcy. Youths broke up marble paving slabs in central Syntagma Square and hurled the chunks at police in full riot gear. The police responded by firing teargas grenades and chasing the protesters through the square and into surrounding streets. Flights were grounded, schools shut and government offices closed in Greece's first nationwide walkout in months. Labour leaders call it the start of a campaign to derail emergency austerity steps launched last month by a government that has already imposed two years of tax hikes and wage cuts. Greece's worsening debt crisis poses a risk to the euro currency and the international financial system. Reforms to Greek finances took on a new urgency this week after the government announced it would miss its 2011 deficit target. Thousands of state workers, pensioners and students had gathered peacefully, beating drums and waving banners reading "Erase the debt!" and "The rich must pay." They marched into the square outside parliament where lawmakers were debating holding a referendum on the response to the fiscal crisis. Reuters saw one bare-chested man covered in his own blood, rescued by bystanders after clashing with demonstrators. Protesters tried to storm an Economy Ministry building, shattering heavy glass at the entrance. Sporadic scuffles between baton-wielding police and stone-throwing youths continued for several hours. Police said at least two police and two civilians were hurt and 12 people detained. Violence was far milder than in June, when more than 100 people were injured in battles between demonstrators and police in Syntagma Square. The strikes forced hospitals to run on emergency staff and the closure of some state schools. Trains were halted, and more than 400 flights were canceled at Athens airport. The Athens Acropolis and major museums were shut. Despite its new measures demanded by the EU and IMF, the government was forced to announce this week it would still fall short of its 2011 deficit target by nearly 2 billion euros, rattling global markets. Polls show nearly four of five Greeks expect a default on the massive national debt within months. "We want this government out. They deceived us. They promised to tax the rich and help the poor, but they didn't," said Sotiris Pelekanos, 39, an engineer and one of the striking workers gathered in central Athens. "I don't care if we go bankrupt. We are already bankrupt." Greece's main labor unions ADEDY and GSEE expect hundreds of thousands of people to walk off the job. "They are not trying to save Greece. They are just killing workers," ADEDY Vice President Ilias Vrettakos said in a rally speech. "They should get the money from the rich, not from us." Private sector workers did not participate in the strike but will take part in a bigger general strike on October 19. Many in the Greek private sector resent perks of state workers, who are protected from layoffs by the constitution. SCRAMBLE TO PROTECT BANKS Greece's announcement this week that it would not meet its 2011 deficit target has put in doubt the viability of a 109 billion euro bailout agreed in July -- the second huge bailout in two years. If that deal must be renegotiated, European banks that hold Greek debt could suffer a heavy blow. EU officials are scrambling to protect banks from a repeat of the crisis that froze the world financial system in 2008. They have postponed until mid-November a decision on whether to approve the next 8 billion euro ($10.7 billion) tranche of bailout loans, giving negotiators more time to press the government to enact promised reforms. A senior official from the "troika" of EU, IMF and European Central Bank negotiators in Athens since last week, told Reuters the tranche would probably be approved, but only if the government proves first it can enact reforms. In more bad economic news on Wednesday, Greece's statistics agency produced revised numbers showing that recession began nearly four years ago, a year earlier than previously thought. The government now says the economy, which was to have resumed growth next year, will instead shrink by another 2.5 percent. Finance Minister Evangelos Venizelos said on Tuesday Greek finances for this year could slip even further behind its target if the country failed to rally round the reforms and show "national cohesion and solidarity." His government has promised to hold a referendum on the fiscal crisis this autumn but has not said what question Greeks would be asked. Parliament debated the referendum law on Wednesday as the protesters gathered outside. Labor unions say the recession has been prolonged and deepened by government salary cuts, tax hikes and layoffs. "The government is panicking and has no strategy," said Thessaloniki port unionist Fani Gourgouri. "These measures are only extending poverty. We'd be willing to shoulder the cost and say 'yes' to austerity if they proceeded with reforms that would create jobs instead of cutting them." World Greece Related Quotes and News Company Price Related News 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 (7) quatra wrote: This, once again, proves that the so-called Forces of Order and Control are the dumbest beings in existence. They simply cannot consider that there may be family members and / or friends amongst the crowds. Also the fact that they themselves are being controlled and, in the end, will have to go too, doesn’t even cross their feeble minds. They just follow orders from their masters like the animals they are. Oct 05, 2011 1:55pm EDT -- Report as abuse dodoman wrote: let Greece default , we cant give one little and lazy country all the money the world needs to support many jobless and hungry people Oct 05, 2011 2:09pm EDT -- Report as abuse Buddesatva wrote: Protesting over frustration with their own behavior, brilliant. The Greeks have exacerbated this problem and until they accept responsibility for their actions the problem is going to get worse. They should be isolated. No point is allowing their infantile behavior to affect the rest of the world. The Greeks need to get jobs, keep them, show up for them, stop retiring at 45, stop issuing checks to themselves and PAY THEIR TAXES. This would make a good start. Stop blaming everyone else for their screw up would be nice as well. What in the world do they think they are protesting against? Oct 05, 2011 2:10pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) 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