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Police and leftist union members applaud as more than 10,000 people march through Athens during the strike. Image Credit: AP

Athens: Protesters clashed with riot police as more than 10,000 people marched through central Athens yesterday during a nationwide general strike against the government's harsh new austerity measures.

The strike grounded all flights and brought public transport to a halt. State hospitals were left with emergency staff only and all news broadcasts were suspended as workers walked off the job for 24 hours to protest spending cuts and tax hikes designed to tackle the country's debt crisis.

Riot police fired tear gas to disperse rock-throwing protesters at one point of the demonstration as more than 10,000 strikers and protesters marched through central Athens, banging drums and chanting slogans such as "no sacrifice for plutocracy," and "real jobs, higher pay." People draped banners from apartment buildings reading: "No more sacrifices, war against war."

Violence

The demonstrators included a group of about 100 back-clad youths in crash helmets and ski masks, some of whom smashed windows of a department store and bank, and sprayed riot police with brown paint. Shopkeepers along the demonstration route scrambled to roll down their shutters, while a few blocks away, people sat at outdoor restaurants, continuing their meals.

Fears of a Greek default have undermined the euro for all 16 countries that share it, putting the Greek government under intense European Union pressure to quickly show fiscal improvement.

It has announced billions of euros in savings through public sector salary cuts, hiring and pension freezes and consumer tax hikes to deal with its ballooning deficit, but the measures have led to a new wave of labour discontent.

The cutbacks, added to a previous $11.2 billion euros (Dh55.99 billion) austerity plan, seek to reduce the country's budget deficit from 12.7 per cent of annual output to 8.7 per cent this year. The long-term target is to bring overspending below the EU ceiling of three per cent of GDP in 2012.

The new plan sparked a wave of strikes and protests from labour unions whose reaction to the initial austerity measures had been muted. Yesterday's strike was the second major walkout in a week, shutting down all public services and schools, leaving ferries tied up at port and suspending all news broadcasts for the day. However, some private bank branches were open despite calls from the bank employees' union to participate in the strike.

About 200 uniformed police, coast guard and fire brigade officers, who cannot go on strike but can hold protests, gathered at a square in the centre of the city shortly before the marches got under way.

"The police and other security forces have been particularly hard hit by the new measures because our salaries are very low," said Yiannis Fanariotis, general secretary of one police association.

The government says the tough cuts are its only way to dig Greece out of a crisis that has hammered the common European currency and alarmed international markets.