Greek anti-austerity protests escalate as bailout talks drag on in Athens

Source:Xinhua Published: 2012-10-4 9:10:31

Greek trade unions carried out another round of anti-austerity protests in Athens on Wednesday, as the government continued negotiations with representatives of international lenders over new spending cuts required to unlock further aid to debt-laden Greece.

Following the unveiling of the 2013 draft budget earlier this week, local government employees took to the streets of central Athens in a motorcade rally to the parliament chanting anti-austerity slogans and briefly clashing with police. They were joined by doctors and nurses who started sit-ins at public hospitals across the country.

"We will not accept further cuts on salaries, pensions and tax increases. Greek society has reached its limits," unionists said, adding that industrial actions would culminate in coming weeks.

The two umbrella unions of public and private sector workers ADEDY and GSEE plan a major new protest on Monday and a general 24-hour nationwide strike later in October, as employees in public transport and public power corporations warn of 48-hour rolling protests.

Meanwhile, Greek Finance Minister Yannis Stournaras wrapped up yet another inconclusive meeting on Wednesday with representatives from European Union and International Monetary Fund creditors.

In statements to the press, Stournaras said he doubted a final agreement on the 13.5 billion euros (17.4 billion US dollars) austerity and reform package for 2013-2014 could be struck before a key Eurogroup meeting on Oct. 8 which will pave the way for an EU summit on Oct. 18.

According to finance ministry sources, after a month of deliberation, Greece and international inspectors still differ on some 2 to 4 billion euros worth of measures in the package suggested by Athens.

Auditors are continuing to question the effectiveness of some proposed structural reforms, insisting on more austerity policies instead to safeguard the outcome.

The 2013 draft budget, tabled at the Greek assembly on Monday, foresees almost 8 billion euros of new austerity measures. Many feel similar measures imposed in 2010 to secure Greece's first international bailout worsened the country's recession.

Greek dailies on Wednesday claimed that auditors pushed for a total of 10 billion euros of spending cuts for next year and more labor market reform.

"You cannot extinguish the fire of recession with a bucket of oil," the main opposition Radical Left Coalition SYRIZA party commented.

The coalition government argues that without further multi-billion euros of international aid by December, Greece faces the prospect of a chaotic default and exit from the eurozone.

Athens hopes that a positive assessment by auditors and its 2013 budget will secure the release of more bailout loans. The government is also seeking a two-year extension to carry out the necessary fiscal adjustment to allow some breathing space for Greek citizens and to counter recession.

Posted in: Europe

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