Prime Minister George Papandreou offered no handouts to austerity-weary Greeks but gave some relief to companies struggling with recession in a main speech on the economy on Saturday. Bound by the conditions of a 110-billion-euro ($140 billion) EU/IMF bailout deal to rescue Greece from bankruptcy, his Socialist government has imposed tax rises and draconian salary and pension cuts to fight deficits, prompting strikes and protests. "We are fighting for the survival of Greece," Reuters quoted Papandreou as saying in his annual economic policy speech at a trade fair in the northern city of Thessaloniki. "Either we'll win together, or we'll sink together." About 20,000 people marched through the city to protest against belt-tightening measures. A few hundred youths tried to break through police lines cordoning off the venue and were pushed back with tear gas in clashes that lasted a few minutes. Papandreou said his government will continue pushing reforms and opening up sectors of the economy such as electricity and freight transport and also overhaul loss-making state firms including Hellenic Railways (OSE). "I ask all the country's productive forces to join us, to support this great change," he said. Bowing to calls from the business world buckling under a deepening recession, he said he would speed up relief for corporations by bringing forward planned cuts in retained earnings tax to 20 from 24 percent in 2011 instead of 2014. But he avoided concrete pledges to a restive public that has taken to the streets in sometimes violent protests this year, reluctant to displease international lenders or risk the next instalment of the loan due in the last quarter. "We are still at the start of our effort. I don't want to make big promises but I understand the difficulties poor pensioners face," he said. "I will ask the finance minister to do his best depending on how revenues go." Despite the harsh measures, opinion polls show his Socialist party ahead of the conservative opposition. A poll by Kappa Research for To Vima on Sunday, showed the Socialists would win 29.1 percent of the vote versus 21.3 percent for the conservatives if elections were held now.
