Strikes in Greece, Spain over austerity measures

STRIKES IN Greece and Spain highlighted resistance to Europe-wide austerity measures yesterday.

The fifth major strike this year by Greek unions disrupted tourism and public transport in protest at planned pension cuts and later retirement, while Spanish workers shut down Madrid’s metro system in anger at a 5 per cent public sector pay cut.

Greek police fired tear gas at rioters shouting “burn parliament” in Athens but fewer ordinary Greeks turned out for rallies in a sign of weariness with anti-austerity protests.

About 12,000 joined marches in Athens during a 24-hour strike called by big unions against drastic pension reforms – down from 50,000 in the biggest protest on May 5th and 25,000 in the later demonstration on May 20th.

Inside parliament, a committee of lawmakers began debate about the pension reforms. The Bill will raise women’s retirement age from 60 to match men on 65 and demand more years at work to qualify for a pension.

The ruling socialists said the existing system would mean more debt, already at 133 per cent of GDP in 2010. Parliament is expected to vote on the reforms in the coming weeks, and the socialist government is likely to be able to push them through.

The strike shut many public offices, banks and local media, while hospitals operated with emergency staff.

Traffic in Madrid was reduced to chaos as subway trains stopped running because of the stoppage to protest against public sector wage cuts ordered by the government. Metro Madrid said subway trains were cancelled after unions refused to comply with an agreed 50 per cent minimum service.

It was the second day of a three-day strike called in protest at an average 5 per cent wage cut for public service workers, due to come into effect next month. The wage cuts are part of an austerity plan aimed at reducing a deficit of 11.2 per cent of GDP in 2009 to 3 per cent by 2013.

In the Basque country, unions staged a one-day general strike to protest the austerity plan and a recent reform which makes it cheaper for firms to lay off workers. Police clashed with picketers in Bilbao and Vitoria. – (Reuters)