Greece makes austerity push, workers gear for strike

Mon Nov 5, 2012 11:23am GMT
 

By Karolina Tagaris and Renee Maltezou

ATHENS (Reuters) - Greece's government presents a new austerity package to parliament on Monday, facing a week of strikes and protests over proposals which must win lawmakers' approval if the country is to secure more aid and stave off bankruptcy.

Parliament is expected to vote on Prime Minister Antonis Samaras's package of 13.5 billion euros ($17 billion) in cost cuts and tax hikes on Wednesday along with measures making it easier for firms to hire and fire workers.

Despite public exasperation at four years of belt-tightening that has helped wipe out a fifth of the economy and leave a quarter of Greeks jobless, the package and a tough budget slated for a vote on Sunday are expected to scrape through parliament.

Greece's powerful main public and private sector unions will launch a 48 hour strike against the legislation on Tuesday and plan marches in Athens' city centre. Journalists, doctors, transport workers and shopkeepers are also planning stoppages.

Approval of the reforms and the passage of the 2013 budget are crucial to unlocking 31.5 billion euros in aid from an International Monetary Fund and European Union bailout that has been on hold since the summer.

"These will be the last cuts in wages and pensions," Samaras said in a speech aimed at galvanizing the members of his centre-right New Democracy party.

"We promised to avert the country's exit from the euro and this is what we are doing. We have given absolute priority to this because if we do not achieve this everything else will be meaningless."

Without the aid, Greece will not be able to redeem a 5- billion euro treasury bill falling due on November 16. The bulk of the new aid tranche, some 25 billion euros, is earmarked to recapitalise Greece's struggling banks and kick-start moribund lending, a prerequisite to climbing out of recession.   Continued...

People wait at a bus station outside of a closed metro station during a 24-hour strike against the government's austerity measures, halting services on the metro, railway and city trains in Athens November 5, 2012. REUTERS/John Kolesidis
 
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