Fresh strikes against Greek austerity policies

Greek civil servants led fresh strikes Monday against government spending cuts as Prime Minister George Papandreou sought to drum up support for his government`s policies in Washington.

Athens: Greek civil servants led fresh strikes Monday against government spending cuts as Prime Minister George Papandreou sought to drum up support for his government`s policies in Washington.
Tax collectors began a two-day walkout, court employees launched a week-long series of work stoppages and garbage collectors also mobilised against state spending cuts that are meant to save 4.8 billion euros (6.5 billion dollars).

State employees, which number around one million, are the main target of the Socialist government`s belt-tightening drive.

"Our members are unduly affected by these austerity measures which constitute a salary cut of 200-600 euros" per month, the head of local administration staff Themis Balassopoulos told state television NET.

The walkouts come ahead of a general strike on Thursday -- the second in a fortnight -- called by the country`s two main unions, the General Confederation of Greek Workers (GSEE) and the civil servants` union Adedy.

Gas station owners and teachers are also planning industrial actions and police union members have been called to demonstrate in front of Athens police headquarters on Thursday.

After taking office last year Papandreou`s socialist government discovered the country`s finances were in much worse state than thought, forcing it to introduce emergency measures including sweeping tax hikes and public sector cutbacks.

The cuts have already sparked protests and strikes disrupting air and ground transport, as well as schools and hospitals.

The Greek government is struggling to service its debt of nearly 300 billion euros and has pledged to reduce its budget deficit from 12.7 percent of output -- over four times the allowed EU level -- by four points this year.

While the government has not ruled out the possibility it might need to turn to the International Monetary Fund, the country`s central bank governor said Monday said Greece would manage its debt crisis without a bailout.

"A scenario in which help is required will not become reality," George Provopoulos told the Financial Times Deutschland.

He added he was confident that Athens would be able to raise some 20 billion euros needed to refinance its debt mountain in April and May -- seen by many as an acid test for the country`s ability to remain solvent.

"I have no doubt that it (the government) will be in a position to pull together the necessary money," Provopoulos said.

Athens successfully raised five billion euros in borrowings on the international bonds market last week, although these were offered at yields of more than six percent.

Overall Greece is looking at borrowing more than 50 billion euros this year but social upheaval is likely to undermine investor confidence.

"With a general strike planned for Thursday and some 20 billion euros of debt set to mature in April and May, market confidence looks likely to remain pretty fragile without even firmer pledges of support from the rest of the eurozone, particularly Germany," said Capital Economics analyst Ben May.

Papandreou has been travelling abroad been seeking to drum up support for Greece from its international partners.

After meeting her Greek counterpart on Friday German Chancellor Angela Merkel said she was "optimistic" Greece would not need assistance from its European partners.

On Sunday, French President Nicolas Sarkozy said the 16-nation eurozone would help if needed and were working on a "certain number of specific measures" to address Greece`s debt crisis, but did not provide details.

Papandreou holds a meeting with US Secretary of State Hillary Clinton on Monday in Washington, and meets with President Barack Obama and Treasury Secretary Timothy Geithner on Tuesday.

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

But the same poll in the To Vima newspaper found that more than eight out of 10 Greeks fear that the government`s austerity drive will push up poverty.

Bureau Report

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