Greek economy in the balance

**The Greek government is due to meet shortly to discuss the terms of a deal with the European Union and IMF to rescue the nation’s embattled economy.**Prime Minister George Papandreou is then to address the nation on live TV.

Shortly afterwards, European finance ministers will gather in Brussels to decide how much money they and the IMF are prepared to lend Greece.

There are fears Greece’s debt crisis could spread to other countries using the European single currency.

Police clashed with demonstrators in Athens yesterday during a protest against government austerity measures.

Day of drama

The Greek government is preparing to unveil a fresh round of sweeping efficiencies, expected to include further tax rises and deeper cuts in pensions and public service pay.

Mr Papandreou and his Finance Minister, George Papaconstantinou, were expected to announce full details of the austerity measures at a news conference immediately after Sunday’s meeting.

Mr Papaconstantinou will then head straight to Brussels for an extraordinary gathering of the 15 other eurozone finance ministers.

They could finally sign off a bail-out deal, which is designed to prevent Greece from defaulting on its enormous debt.

The eurozone countries are speeding up rescue efforts for Greece amid fears its debt crisis could pull down other members.

The EU is demanding austerity cuts in exchange for a huge bail-out. The rescue package is expected to amount to as much as 120bn euros (£100bn; $160bn) over three years.

The day of high drama behind closed doors comes a day after demonstrators clashed with police at the finance ministry in the capital.

A state TV truck was petrol-bombed and a prominent hotel was vandalised in the central Syntagma square.

Thousands of Greeks took part in May Day rallies called by trade unions and left-wing parties. Protesters hurled bottles and rocks and fought running battles with police in riot gear.

Huge public resistance

Angry protesters marched through Athens shouting: “Hands off our rights! IMF and EU Commission out!”

There were reports of similar scenes in the northern city of Thessaloniki, with youths attacking banks and business premises.

There is huge public resistance to the wage cuts, tax rises and pension reductions that are expected to be implemented.

Our correspondent says the unions hope the rallies will demonstrate to the government, the eurozone, the IMF and the international markets, that they can mobilise enough people to defeat the new austerity programme.

The BBC’s Malcolm Brabant in Athens says the latest study of Greek attitudes shows most people are angry and dismayed about the bail-out, because they do not feel responsible for causing the crisis.

Most people on the streets want the government to make the rich pay for the deficit, rather than ordinary working citizens, he says.

Mr Papandreou says the loan is essential to save the country and protect its future, and has warned citizens to brace themselves for a period of hardship.

He has said he will not weaken despite opposition and the political cost of the unpopular measures.

Are you in Greece? Have you seen the protests? Do you support them? What do you think of the government’s austerity measures?

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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