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Greek unions call new strikes | |
(10 minutes later) | |
Greece's two main unions have called a new general strike on 11 March to protest against austerity cuts they say are "anti-popular" and "barbaric". | |
Public sector workers are currently striking and protestors have gathered in front of Parliament in Athens. | |
Meanwhile Greece's Prime Minister will the German Chancellor in Berlin later to discuss Greece's financial crisis. | |
George Papandreou hopes for a German commitment to provide support if it cannot raise money from the markets. | |
However, reports of potential support for Greece are proving unpopular in Germany. | |
Its economy minister said earlier that his government "does not intend to give a cent" to Greece in financial aid. | |
On Wednesday, Mr Papandreou revealed further tax rises and spending cuts that have gone down very badly with public sector workers, but could reduce the risk of Greece needing help. | On Wednesday, Mr Papandreou revealed further tax rises and spending cuts that have gone down very badly with public sector workers, but could reduce the risk of Greece needing help. |
Members of the Socialist-led Greek parliament are set to approve the austerity measures on Friday. | |
Rock-throwing protestors outside the parliament clashed with police, who used tear gas to disperse them. | |
German fears | German fears |
Many Germans do not support their taxes being used for bailouts. | Many Germans do not support their taxes being used for bailouts. |
ANALYSIS By Oana Lungescu, BBC News, Berlin | ANALYSIS By Oana Lungescu, BBC News, Berlin |
Despite mounting speculation about an EU bail-out, most Germans oppose giving aid to a country that has misreported budget figures for years to hide its mountain of debt. | Despite mounting speculation about an EU bail-out, most Germans oppose giving aid to a country that has misreported budget figures for years to hide its mountain of debt. |
Chancellor Merkel has warned that the euro is in the most difficult phase since its creation. | Chancellor Merkel has warned that the euro is in the most difficult phase since its creation. |
Few doubt that Mrs Merkel will eventually take action if she sees the stability - or credibility - of the euro under threat. | Few doubt that Mrs Merkel will eventually take action if she sees the stability - or credibility - of the euro under threat. |
But with support for her centre-right coalition slipping, Mrs Merkel has reassured voters that she will not use taxpayers' money, nor breach the "no bail-out clause" in the EU's Maastricht Treaty. | But with support for her centre-right coalition slipping, Mrs Merkel has reassured voters that she will not use taxpayers' money, nor breach the "no bail-out clause" in the EU's Maastricht Treaty. |
A recent poll shows that 71% of Germans think the EU should not help Greece at all. You could call it a culture clash. Germans are big savers, not big spenders. Germany wary of footing Greek bill | A recent poll shows that 71% of Germans think the EU should not help Greece at all. You could call it a culture clash. Germans are big savers, not big spenders. Germany wary of footing Greek bill |
There are also fears that rescuing one country could encourage others to expect the same. | There are also fears that rescuing one country could encourage others to expect the same. |
Meanwhile, Germany passed its budget for 2010, with borrowing set to soar this year. | Meanwhile, Germany passed its budget for 2010, with borrowing set to soar this year. |
New borrowing is expected to reach 80.2bn euros ($109bn; £72.5bn) - double the previous highest debt record, set in 1996. However this is less than the 85.8bn euros initially proposed by the government. | New borrowing is expected to reach 80.2bn euros ($109bn; £72.5bn) - double the previous highest debt record, set in 1996. However this is less than the 85.8bn euros initially proposed by the government. |
Raising funds | Raising funds |
On Thursday, his government went to the financial markets to borrow money and saw its 5bn euro ($6.8bn; £4.5bn) bond issue oversubscribed. | On Thursday, his government went to the financial markets to borrow money and saw its 5bn euro ($6.8bn; £4.5bn) bond issue oversubscribed. |
But Greece will need to borrow more in the coming months - more than $70bn for the year as a whole. | But Greece will need to borrow more in the coming months - more than $70bn for the year as a whole. |
Mr Papandreou has suggested that Greece might go to the International Monetary Fund (IMF) for help. | Mr Papandreou has suggested that Greece might go to the International Monetary Fund (IMF) for help. |
But the other countries in the eurozone would not welcome what would be seen as a sign that they could not fix their own problems. | But the other countries in the eurozone would not welcome what would be seen as a sign that they could not fix their own problems. |
The president of the European Central Bank, Jean-Claude Trichet, has dismissed the idea of the IMF providing financial aid for Greece. | The president of the European Central Bank, Jean-Claude Trichet, has dismissed the idea of the IMF providing financial aid for Greece. |
"I do not trust that it would be appropriate to have the introduction of the IMF as a supplier of help through standby or through any kind of such help," he told reporters in Frankfurt on Thursday. | "I do not trust that it would be appropriate to have the introduction of the IMF as a supplier of help through standby or through any kind of such help," he told reporters in Frankfurt on Thursday. |
Mr Papandreou will also meet French President Nicolas Sarkozy in Paris on Sunday before travelling to Washington to meet US President Barack Obama on Tuesday. | Mr Papandreou will also meet French President Nicolas Sarkozy in Paris on Sunday before travelling to Washington to meet US President Barack Obama on Tuesday. |