Protesters clash with police over Greek cuts

THE Greek parliament approved new spending cuts and taxes yesterday aimed at defusing the country’s debt crisis, while protesters opposed to the measures fought with police outside.

Prime Minister George Papandreou headed abroad to seek European leaders’ support for his efforts.

Riot police used tear gas and baton charges to disperse rioters who chased the ceremonial guards in 19th-century kilts and tasselled garters away from the Tomb of the Unknown Soldier outside the parliament, while a top trade union leader was roughed up by left-wing protesters.

It was the biggest outburst of violence since Greece’s debt crisis escalated late last year. Police say they arrested five people, and seven officers were injured.

Greece’s financial troubles have shaken the European Union and its shared euro currency, whose rules were supposed to prevent governments from running up too much debt.

Up to 7,000 demonstrators gathered outside as lawmakers debated the austerity package, which aims to save €4.8 billion with measures including higher consumer taxes and cuts to public sector workers’ pay of up to 8%.

Papandreou met in Luxembourg with Prime Minister Jean-Claude Juncker, head of the group of eurozone finance ministers and was set to hold talks later in Berlin with German Chancellor Angela Merkel.

Demonstrators attacked the two military guards and their escorting officers, smashing windows and kicking the guard posts. Earlier, left-wing protesters attacked the head of Greece’s largest trade union who was addressing the crowd.

GSEE head Yiannis Panagopoulos traded blows with his assailants before being whisked away bloodied and with torn clothes.

GSEE and the ADEDY umbrella civil servant union held work stoppages to protest the austerity measures, while hospitals, schools and public transport were closed down.

Further violence broke out later in Athens, with masked youths attacking riot police inside the Council of State, Greece’s highest administrative court, and trying to break into the Labour Ministry. Rioters also smashed the glass fronts of two banks, two hotels, a mobile phone shop and a fast food restaurant.

The centre-left government is seeking a €16bn in savings this year, to reduce a budget deficit of some €30bn that is over four times the EU limit as a percentage of annual output.

The cuts are key in convincing bond markets to loan the country money and to win support from the European Union.

Merkel and Germany, as the biggest of the 16 countries that use the euro, would play a key role in any financial lifeline the EU plans to offer Greece. But the German government has said that yesterday’s meeting was not about giving aid and the EU’s promise of support, first issued last month, remains vague.

Despite raising €5bn from a successful 10-year bond issue Thursday, Athens remains under intense pressure from high borrowing rates. Papandreou has ruffled Europe’s feathers by warning that Greece could request financial help from the International Monetary Fund unless the EU details potential emergency support.

Papandreou insists Greece is not seeking bailout money from the European Union but a public commitment to a financial rescue plan that would reassure markets.