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As cuts bite, Greece battles dissent
Published in Saudi Press Agency on 08 - 07 - 2010

The Greek government is battling growing discontent over a new round of economic austerity, with fresh strikes, public hostility, and party dissent testing the nation's ability to make it out of its debt crisis, according to AP.
Unions on Thursday staged their sixth general strike this year _ halting public transport and services, stopping ferry sailings and closing schools, newspapers, courts and public hospitals.
«We will insist in this protest because we are right,» said Yiannis Panagopoulos, leader of the GSEE umbrella union which is heading the strike.
Unions are planning two separate protest marches in Athens later Thursday, in which uniformed police unionists are set to join. Previous demonstrations this year have turned violent, and on May 5 three employees died trapped in a bank set on fire by suspected anarchist rioters.
Socialist-led unions angrily oppose an overhaul of pension and labor laws, in a confrontation closely watched by other European countries grappling with their own high budget deficits and struggling welfare systems.
Late Wednesday, lawmakers voted 159-137 to impose sweeping pension reforms, scrap benefits and raise women's retirement age from 60 to 65.
Socialist dissenters had openly criticized the bill, but yielded to strong party pressure after winning dozens of 11th-hour amendments, most slowing down the changes.
A late pledge also came from Prime Minister George Papandreou to eventually reverse some pension cuts.
«When our economy is back on its feet, and growth returns, we will be able to improve pensions and offer better services to workers and pensioners. That is our commitment,» Papandreou told parliament before the vote.
Some changes could still be undone when legislators vote again Thursday on individual articles of the pension reform.
«I expressed my very strong reservations to a number of articles,» said Panayiotis Kouroumplis, a Socialist member of parliament.
«Criticism can be helpful ... We are not living under colonial rule.»
Despite cutting salaries and raising taxes, Papandreou remained popular for months during the country's major financial crisis, triggered by ballooning deficits and a national debt of more than ¤300 billion ($377 billion).
But recent surveys point to a slump for Papandreou's Socialists, after Greece dodged the immediate threat of bankruptcy and began imposing painful longer-term reforms while the country sank deeper into recession.
The reforms were agreed in exchange for ¤110 billion in bailout loans from the European Union and International Monetary Fund.
A weekend poll for the Athens daily To Vima showed support for the Socialists at 23.4 percent, compared with 43.9 percent of the popular vote for the party in general elections last October. The Kapa Research survey of 1,002 adults on June 30 and July 1 had a margin of error of plus or minus 2.5 percent.
Greek fiscal reforms are considered the most ambitious among EU countries like Britain and Spain that are imposing budget cuts.
The EU says the Greek fiscal measures are «broadly on track» but warned in a report Wednesday that unemployment is likely to worsen after hitting a 10-year high of 12.1 percent in February.
The data has done little for party morale, as Cabinet ministers scramble to avoid bearing the brunt of drastic spending cuts. Papandreou has already expelled three deputies who failed to support austerity measures in parliament.
Transport Minister Dimitris Reppas, in charge of several loss-making public transport companies, lashed out at the treasury this week, demanding that more be done to curb tax evasion.
«We should not point our finger at workers,» Reppas said. «There is wealth in this country that remains untaxed, and those with high incomes who should contribute more. This effort must be much more effective.»
Ferries to Greek islands and train services have also been canceled for Thursday's strike, and flights will be grounded between 0700 and 1100 GMT.


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