Greek strike grounds flights

A nationwide strike grounded flights, trains and ferries in Greece today as thousands rallied in Athens to protest austerity …

A nationwide strike grounded flights, trains and ferries in Greece today as thousands rallied in Athens to protest austerity plans aimed at pulling Greece out of its debt crisis.

Participation in the strike will be a barometer for ordinary Greeks' support for government efforts to shore up deteriorating public finances that have rattled markets and worried its European Union partners.

"Today, Europe's eyes are turned on us, today we are demonstrating for hope and future...to cancel the measures," Yannis Panagopoulos, head of the private sector union GSEE, told the rally.

It is the first joint strike called by public and private unions representing half of Greece's workforce of 5 million since the Socialist government won elections in October.

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All but emergency flights to and from Greece were grounded and ferries were at a standstill. Monuments such as the Athens Acropolis shut down.

"I am striking against the wage cuts...because others stole the money and we are the ones who are going to pay," said 36-year old civil servant Michalis Koroleos. "They are cutting my allowances and I have two children to raise."

The strike coincides with a visit by EU officials assessing whether Greece is on track to cut its double-digit deficit.

Under the scrutiny of EU policymakers and markets, the government has so far refused to give in to protesters' demands. Yesterday, finance minister George Papaconstantinou said the government might decide on more measures to cut the deficit after talks with the visiting EU inspectors.

Fitch Ratings downgraded the ratings of Greece's four largest banks yesterday, expecting fiscal tightening to weigh on the economy and loan demand, hurting profits.

Unions say the government's plan will only burden the poor and have threatened to stage further strikes next month.

"We ask the government not to give in to the desires of the markets, to set people's needs as a priority and adopt a mix of economic and social policies that won't lead to recession but to jobs," said GSEE's Panagopoulos.

Spanish workers unhappy about plans to raise the retirement age marched on Tuesday but the main protest in Madrid seemed relatively small in a sign that the country's unions may be weakening.

Portugal's second largest union warned on Monday it would call more strikes if the government extended a public sector wage freeze beyond this year.

Reuters