Greece austerity cuts stoke further civil unrest
Further protests are expected in Greece in response to ramped-up austerity measures being imposed by ministers attempting to avoid deeper financial ruin.
A decision by the Greek government to further cut pensions, extend property tax, and suspend thousands more public workers had led to a 24-hour strike by public transport staff and taxi drivers.
Public sector workers are also expected to gather in central Athens for additional protests.
The government is struggling to meet strict fiscal targets and persuade international lenders to give it more bailout funds. Wednesday's decision to extend the cuts came in the wake of two days of hard talks with the International Monetary Fund (IMF) and European authorities.
The decision taken by the Greek government will see the number of civil servants suspended on partial pay rising 50% to 30,000 by the end of the year, with monthly pensions above €1,200 subject to a 20% cut of the amount over that threshold.
Pensioners below the age of 55 will see a 40% cut in the amounts of their pensions above the €1,000 limit.
The moves have been met with hostility by many, frustrated that the austerity programme appears to be deepening the recession and increasing unemployment.
Looming behind the fresh round of civil unrest is the fear that the country could avoid defaulting on the EU’s bailout assistance, which would throw the Euro Zone into deeper financial instability.
The government is implementing the measures in return for an 8bn-euro (£6.9bn) tranche of aid needed to avoid default.
It claimed the move "would allow us to comply with the bailout plan through 2014" and remain at the core of the eurozone.
Fears in the financial markets that Greece was close to defaulting on its debts had sent share prices tumbling and the euro lower.
