Greece On Strike As Bailout Deal In Limbo

DEREK GATOPOULOS

ATHENS, Greece (AP) — Greece's future in the eurozone came under renewed threat Friday as popular protests again turned violent and dissent grew among its lawmakers after European leaders demanded deeper spending cuts.

The country's beleaguered coalition government promised to push through the tough new austerity measures and rescue a crucial euro130 billion ($170 billion) bailout deal after six members of the Cabinet resigned.

Prime Minister Lucas Papademos promised to "do everything necessary" to ensure parliament passes the new austerity measures that would slap Greeks with a minimum wage cut during a fifth year of recession. He also promised to replace any other Cabinet members who did not fully back his efforts.

"It is absolutely necessary to complete the effort that began almost two years to consolidate public finances, restore competitiveness and economic recovery," Papademos told an emergency Cabinet meeting.

Draft legislation for the new austerity measures was submitted to parliament after the five-hour meeting ended.

In central Athens, clashes erupted outside Parliament between dozens of hooded youths and police in riot gear. Police said eight officers and two members of the public were injured, while six suspected rioters were arrested.

The violence broke as more than 15,000 people took to the streets of the capital after unions launched a two-day general strike that disrupted transport and other public services and left state hospitals running on emergency staff.

Scores of youths, some in gas masks, used sledge hammers to smash up marble paving stones in Athens' main Syntagma Square before hurling the rubble at riot police.

Debt-stricken Greece does not have the money to cover a euro14.5 billion bond repayment on March 20, and must reach a vital debt-relief deal with private bond investors before then.

Papademos said the bailout and the deal with private creditors would return Greece to growth next year, and deliver a 4.5 percent primary surplus in 2012 — better than an earlier official prediction of 1.1 percent of gross domestic product.