Wednesday, 10 February 2010

Greece crisis: will there be a Europe bailout?

By Channel 4 News

As workers in Greece strike for 24 hours in protest at harsh economic measures to control debt, Faisal Islam believes Germany and France are "cooking up" a bailout.

Public sector workers in Greece are beginning industrial action in the first major test of the government's commitment to push through tough measures to tackle a major debt crisis.

Business reporter John Sparks, who is in Athens, writes: "The strikes began early this morning. Flights were halted just after midnight, state schools and tax offices have been shut and state-run hospitals are now running on emergency staff.

"Unions ended weeks of caution after Greece's new socialist government introduced vicious cuts — like cutting public sector pay, slashing early retirement rights, and even tapping the country's powerful orthodox church for more taxes.

"The stoppage has been organised by Aday, an umbrella union representing civil servants.

"The largest private sector labour organisation in Greece, the GSEE union, is planning another strike on 24 February.

"But it remains unclear whether the protests will represent the start of a serious labour backlash against the new measures or a demonstration of union dissatisfaction in a country where strikes are common."