Greek general strike intensifies amid EU meeting in Brussels

Author: Nick Iliev Date: Thu, Feb 11 2010 4987 Views

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Storm clouds gather over Greece as European Union leaders prepare for an urgent meeting in Brussels on February 11 2010.

While the Greek public sector rose to arms against the austerity measures of the Pasok-led government, the 27 members of the EU will have to figure out an escape plan for the country and its public debt, without destabilising the euro in the process.

The public sector strike brought services to a standstill in Greece, with the airport being shut and hospitals only accepting "emergency cases," world media reported.

The government's decision to freeze public sector salaries, trim armed forces spending and reduce government agencies, to cut on public spending as well as raise the retirement age have been interpreted by Greek trade unions as a "declaration of war."

The latest to join the protests were the taxi unions in the country.

Taxis in the capital were to go on a general strike on February 11, after the association of Attica taxi drivers (SATA) declared a 24-hour strike starting at 5am, Greek daily Kathimerini said on February 11 2020.

Taxis in other major cities and towns nationwide were expected to follow the actions from their colleagues in the capital, the report said. Taxi drivers were up in arms against the impact of the new tax reforms announced by the government.

SATA denounced the Government measures, saying that they they "would create a series of new problems and make our occupation more difficult, if not impossible." Taxi drivers were considering further strike action in the following week.

Meanwhile, Greek farmers who have been up in arms against the government decisions, staged blockades along the Bulgarian – Greek border for the fourth week running, while 18 blockades were manned at major arteries and junctions in the north of the country.
With the government apparently unable or unwilling to meet demands of the farmers, the end of the blockades were no where in sight.

Apart from the humanitarian disaster in Haiti, also paramount on the agenda, EU leaders must decide on how to tackle Greece's debt problems and thus ease pressure on the euro. EU rules prevent eurozone members from jointly bailing out Greece, but bilateral help might be forthcoming. According to international media, talks of a potential German-French bailout of Greece were underway.

The proposed salvation from the budget drowning envisaged by the Greek government includes freezing salaries, increased taxes and pension reforms. Pasok must persuade the population that the cuts in public spending, trimming of public services and government administrations and defence budget cuts are all essential.

But it will also have to make sure that unemployment, which is on the rise, is not spiraling out of control.

Greek finance minister George Papaconstantinou vowed that the administration would decrease the budget deficit from an estimated 12.7 per cent of gross domestic product in 2009 to below three per cent by 2012. The recovery plan has been endorsed by the European Commission, which was expected to watch vigilantly over its implementation.

The country is not the only sore area of the 27 member block however. Other eurozone countries with substantial deficits, such as Portugal and Spain, are seen as vulnerable if Greece's budget crisis is not tackled resolutely.

Following a meeting on February 10 2010 between Greek prime minister George Papandreou and the French president Nicolas Sarkozy in Paris, Papandreou said his government would do whatever was necessary to tackle the problem.

"We have not asked for help," he said. "We have said that we just want you to support our own will, our country's credibility in implementing this programme" the BBC quoted Papandreou as saying.