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| Greeks strike over austerity plan | Greeks strike over austerity plan |
| (10 minutes later) | |
| Public sector workers in Greece have launched a nationwide strike in protest at government measures to tackle the country's huge budget deficit. | Public sector workers in Greece have launched a nationwide strike in protest at government measures to tackle the country's huge budget deficit. |
| Flights have been grounded, many schools are closed and hospitals are operating an emergency-only service. | Flights have been grounded, many schools are closed and hospitals are operating an emergency-only service. |
| The government wants to freeze pay, gather more taxes and reform pensions. | The government wants to freeze pay, gather more taxes and reform pensions. |
| EU leaders will discuss the issue during a summit in Brussels on Thursday amid concern the Greek crisis could threaten the credibility of the euro. | EU leaders will discuss the issue during a summit in Brussels on Thursday amid concern the Greek crisis could threaten the credibility of the euro. |
| Despite heavy rain, there were rallies across the country, with hundreds of striking workers and pensioners gathering in the centre of Athens ahead of a planned protest there. | Despite heavy rain, there were rallies across the country, with hundreds of striking workers and pensioners gathering in the centre of Athens ahead of a planned protest there. |
| Public anger | Public anger |
| The BBC's Malcolm Brabant reports from the capital that the rallies have been mainly peaceful, but in one incident police fired tear gas at rubbish collectors who tried to drive through a police cordon. | The BBC's Malcolm Brabant reports from the capital that the rallies have been mainly peaceful, but in one incident police fired tear gas at rubbish collectors who tried to drive through a police cordon. |
| It's a war against workers and we will answer with war Union member Christos Katsiotis Flanders: Lessons for Europe? Mason: Europe's crisis | It's a war against workers and we will answer with war Union member Christos Katsiotis Flanders: Lessons for Europe? Mason: Europe's crisis |
| Some demonstrators threw stones at the police but the trouble quickly died out. | Some demonstrators threw stones at the police but the trouble quickly died out. |
| The unions regard the austerity programme as a declaration of war against the working and middle classes, our correspondent says, and their resolve is strengthened by their belief that this crisis has been engineered by external forces, such as international speculators and European central bankers. | The unions regard the austerity programme as a declaration of war against the working and middle classes, our correspondent says, and their resolve is strengthened by their belief that this crisis has been engineered by external forces, such as international speculators and European central bankers. |
| "It's a war against workers and we will answer with war, with constant struggles until this policy is overturned," said Christos Katsiotis, a union member affiliated to the Communist Party, at the Athens rally. | "It's a war against workers and we will answer with war, with constant struggles until this policy is overturned," said Christos Katsiotis, a union member affiliated to the Communist Party, at the Athens rally. |
| Have Your Say Greece should first of all help itself by leaving the Euro Sam, UK Read your comments | |
| Others in the capital either see the cuts as necessary or argue that the strike is politically motivated. | Others in the capital either see the cuts as necessary or argue that the strike is politically motivated. |
| "We have to implement the austerity measures, or the country will not be able to get out of this crisis," said Katerina, a private sector employee. "We have to pay for the mistakes of the past." | "We have to implement the austerity measures, or the country will not be able to get out of this crisis," said Katerina, a private sector employee. "We have to pay for the mistakes of the past." |
| On Tuesday, Greek Prime Minister George Papandreou's socialist government announced that it intends to raise the average retirement age in a bid to save the cash-strapped pensions system. | On Tuesday, Greek Prime Minister George Papandreou's socialist government announced that it intends to raise the average retirement age in a bid to save the cash-strapped pensions system. |
| The move comes on top of other planned austerity measures, including a public sector salary freeze and a hike in petrol prices announced last week. | The move comes on top of other planned austerity measures, including a public sector salary freeze and a hike in petrol prices announced last week. |
| Deficit and debt | Deficit and debt |
| Further government measures include the non-replacement of departing civil servants, and tax collectors recovering billions of euros lost to tax evasion. | Further government measures include the non-replacement of departing civil servants, and tax collectors recovering billions of euros lost to tax evasion. |
| George Papandreou has faced down public opposition so far | George Papandreou has faced down public opposition so far |
| Public sector workers will not be hit as hard as they have been in the Irish Republic, but they complain that some of the lowest paid will suffer while the rich dodge tax with impunity, says BBC Europe correspondent Jonny Dymond. | Public sector workers will not be hit as hard as they have been in the Irish Republic, but they complain that some of the lowest paid will suffer while the rich dodge tax with impunity, says BBC Europe correspondent Jonny Dymond. |
| Financial markets around the world and politicians from across Europe will be watching the situation carefully, he reports from Athens. | Financial markets around the world and politicians from across Europe will be watching the situation carefully, he reports from Athens. |
| Greece's deficit is, at 12.7%, more than four times higher than eurozone rules allow. Its debt is about 300bn euros ($419bn; £259bn). | Greece's deficit is, at 12.7%, more than four times higher than eurozone rules allow. Its debt is about 300bn euros ($419bn; £259bn). |
| The markets remain sceptical that Greece will be able to pay its debts and many investors believe the country will have to be bailed out. | The markets remain sceptical that Greece will be able to pay its debts and many investors believe the country will have to be bailed out. |
| The uncertainty has recently buffeted the euro and the problems have extended to Spain and Portugal, which are also struggling with their deficits. | The uncertainty has recently buffeted the euro and the problems have extended to Spain and Portugal, which are also struggling with their deficits. |
| The possibility of Greece or one of the other stricken countries being unable to pay its debts - and either needing an EU bailout or having to abandon the euro - has been called the biggest threat yet to the single currency. | The possibility of Greece or one of the other stricken countries being unable to pay its debts - and either needing an EU bailout or having to abandon the euro - has been called the biggest threat yet to the single currency. |
| Mr Papandreou has already faced down a three-week protest by farmers demanding higher government subsidies. | Mr Papandreou has already faced down a three-week protest by farmers demanding higher government subsidies. |