Greeks staged a three-hour general strike in Athens today against the 2011 budget which imposes yet more austerity on the debt-laden nation, but parliament was set to pass the bill later in the day anyway.
A public transport stoppage also paralysed the city, but some Greeks questioned the point of countless strikes and protests this year which have failed to divert the government from an austerity path demanded by the nation's EU/IMF bailout.
At the same time the series of spending cuts and tax rises have failed to calm fears about Greece's ability to pull itself out of a debt crisis that has shaken the entire euro zone.
"We don't agree with austerity, but nothing is going to change. The government will not change policies just because we take to the streets," said 43-year old secretary Susanna Apostolaki, who was unsure whether she would take part in a protest rally in Athens.
Next year's budget includes more tax increases and wage cuts in state companies to put Greece back in line with terms of the EU/IMF bailout agreed in May, after some slippages this year.
Analysts say the additional austerity in 2011 will hurt the economy even more without guaranteeing the country will avoid a debt restructuring. Fitch agency said late yesterday it may cut the country's credit rating next month to junk, as both other major rating agencies have already done.
The main public and private sector labour unions called the three-hour strike which started at 10am in Athens region.
On the capital's streets, people were split on whether to walk off the job. About 2,000 people gathered in front of parliament to protest the budget, with banners reading "We will strike until we win", but others doubted this would have any impact.
The government holds 156 seats out of 300 in parliament and the budget is expected to be approved despite growing discontent among the ruling PASOK party ranks.
Athens bus and subway drivers have been holding on and off strikes for two weeks, keeping Christmas shoppers from the city centre, adding to the strain of recession-hit retailers.
The government threatened to break the transport strikes with emergency legislation it used earlier this year to end action by truck drivers and other transport workers. "Everyone has to show responsibility ... the state has all the powers it needs to protect the public interest," government spokesman George Petalotis said in a television interview.
Greek prime minister George Papandreou has expelled four deputies for disagreeing publicly with his austerity policies but unrest is growing in his party.
"I am giving the government a last chance," said PASOK deputy Thomas Robopoulos during the budget debate yesterday.
The socialists, who revealed a gaping budget deficit after coming to power last year, have braved public discontent and taken draconian measures to meet the bailout terms.
This year, the government has already cut public sector wages by about 15 per cent, increased the retirement age, frozen pensions and cut public spending. But it has failed to boost tax collection as much as targeted, despite a hefty VAT increase.
Partly as a result of the measures, the economy is forecast to shrink 3 per cent next year after a 4.2 per cent drop in 2010, with unemployment jumping to a record 14.6 per cent from an estimated 12.1 per cent this year.
Greece targets a budget deficit of 7.4 per cent of GDP next year, down from about 9.4 per cent this year.
Reuters