Greek public sector unions are to stage a third massive walkout in reaction to controversial austerity measures implemented by the government. The strike has been announced for March 16 2010, Greek media reported.

The Greek main civil servants’ union, Adedy, declared on March 3 that the third strike, due to last 24 hours, will be launched following the government's decision to implement a fresh batch of austerity measures on March 4.

Greek Prime Minister George Papandreou said that this is a battle of survival and described the current budget crisis as a "wartime situation".

Under pressure from the European Union, the government has approved a new package of tax increases and spending cuts to save about 4.8bn euro and decrease the budget deficit from the current 12.7 per cent to 8.4 per cent by the end of 2010.

The new measures, which cap an already severe austerity plan, include rises in sales taxes from 19 to 21 per cent, a cut in holiday bonuses paid to civil servants, a pensions freeze and increased taxes on luxury goods, fuel, cigarettes and alcohol.

Public sector employees are also enraged at the planned abolition of the so called 14^th salary. Greek are paid 14 salaries for 12 months work, one at Christmas and one during the Easter holidays.

Accordingly, Adedy urged its members to join forces on a massive walkout on March 16, coincidentally also the deadline given to the country by the EU "to show progress in curbing its ballooning budget deficit", Greek daily Kathimerini said.

Widespread discontent in Greece is attributed to the fact that most Greeks believe that they never saw any of the money that their government allegedly spent on them, and that their salaries have been decreasing systematically, while the country's cost of living has risen relentlessly. They argue that the entire population is being stigmatised and punished for the greed and mistakes of an elite minority.

More than 70 per cent of Greek pensioners are on pensions of less than 600 euro a month, while the average wage in the country is about the same.

The union staged another strike in early February and joined a 24-hour walkout called by the main labour union, the general confederation of Greek labour (GSEE), last week.

Greece's astronomical debt crisis has dominated headlines since the socialist Pasok government came into power and unveiled the true reality of the country's public deficit. It stands at 12.7 per cent of GDP, or four times the amount allowed for the eurozone, and nearly twice the figures announced by the previous conservative government, New Democracy.

In addition, Greece is saddled with debts exceeding 300 billion euro, more than 120 per cent of the country's GDP.