Tear gas fired at Athens protest

Striking Greek teachers stage a protest outside the country's parliament - 10 May 2011Many Greeks are angry over increased taxes and government cuts to wages and pensions
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Greek labour unions are staging a one-day strike in protest against the government’s austerity measures.

The strike, called by two of the country’s largest unions, is expected to shut down most public services and ground flights.

Greece is one year into an international bail-out of its foundering economy and there are fears a new rescue package may be needed.

The government has had to cut spending in order to qualify for the bail-out.

Many Greeks are angry over cuts to wages and pensions, job losses and increased taxes.

Wednesday’s strike was called by the private sector union GSEE and the public sector union ADEDY.

Hospitals will be operating with skeleton staff only, schools will be closed, municipal transport will be disrupted and airports and docks will be largely closed apart from emergency services.

The government’s fiscal restructuring programme has combined with a lingering recession to push unemployment to about 15%.

Despite the spending cuts, the government is failing to close its budget deficit as quickly as hoped – sapping market confidence that it will be able to avoid defaulting on its debts.

The government was hoping to return to the markets to raise capital next year, but it is facing extremely high interest rates from private sector lenders, and so may need a further loan from international organisations.

A European Union mission is in Athens this week to review Greece’s progress on meeting the terms of the 110bn euros ($158bn; £97bn) joint EU-IMF emergency bail-out agreed last year.

It has another two years to run and the mission’s assessment will be key to deciding whether Athens will be offered better terms on the loans.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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