General Strike Closes Down Most of Greece

Workers in Greece have demonstrated in the millions against the austerity measures imposed by the government resulting from the world economic crisis gripping the capitalist system globally. Another general strike was held on March 11, 2010., a photo by Pan-African News Wire File Photos on Flickr.

Strike closes down most of Greece

By Nikolia Apostolou and Dimitris Bounias, Special for USA TODAY

ATHENS – Thousands of Greek workers shut down schools, hospitals and museums Wednesday to protest spending cuts that the government says are needed to prevent a bankruptcy that could roil global financial markets.

"Take the memorandum and leave!" chanted 13,000 demonstrators in Athens who were referring to the cuts Greece agreed to make so it could get an emergency loan from the International Monetary Fund and European creditors.

Greece announced it would begin implementing parts of the agreement such as putting some state workers on partial pay and suspending 30,000 state employees, as well as the imposition of a new property tax. Greece says it has enough money to pay pensions, salaries and bondholders only until mid-November.

But marchers who were mostly from Greece's two largest unions representing state workers and private workers say the bailout will not make matters better for ordinary people.

"I don't see anything changing even if there's a memorandum," said Zeta Papadopoulou, 30, a photographer.

People affiliated with the Communist Party marched into the central Syntagma Square, carrying red flags and chanting: "No sacrifice for the bosses!" Others waved banners stating, "The rich must pay!" Most private workers did not join the protests.

Air-traffic controllers left work, forcing the cancellation of dozens of flights. Getting around was difficult since ferry services, bus and train lines were not running at full capacity. The Athens Acropolis and major museums were closed.

Minister of Internal Affairs Charis Kastanidis announced that the government will hold a referendum to ask the citizens what should be done to solve the fiscal problems. For years, Greece's politicians have developed a clientele relationship with the electorate, trading votes for guarantees of permanent employment by the state.

The IMF said Greece's attempt to face up to its overspending and bloated public sector is "more than overdue" but that it should be careful not to wreck its economy in the process.

Some economists said the bailout will do little over the long term if Greece does not rein in spending.

"If the public sector isn't minimized, surplus won't be created and the deficit hole will remain," said Theodoros Pelagidis, professor of economics at the University of Piraeus.

The conditions set for the loans — tax hikes, budget cuts, liberalization of state controls on the market and privatization of state-owned enterprises — have the potential to transform the country's over-regulated economy, economists say. But many Greeks are worrying about the near future.

"I wasn't demonstrating today; I don't anymore," said Pantelis Liakopoulos, 36, a video editor. "From the moment the austerity measures have been passed, there's nothing to demonstrate about. It's like begging.