Striking Greeks protest austerity as EU meets

Greek workers walked off the job for the second time in three weeks on Thursday, aiming to show EU leaders meeting in Brussels that a new wave of wage and pension cuts will only worsen their plight after five years of recession.

More than 20,000 protesters were gathering in central Athens as most business and public sector activity ground to a halt at the start of the 24-hour strike called by the country's two biggest labour unions, ADEDY and GSEE.

Streets emptied, with police on every corner and 4,000 officers deployed to protect ministries and seal off access to parliament.

"Enough is enough. They've dug our graves, shoved us in and we are waiting for the priest to read the last words," said Konstantinos Balomenos, a 58-year-old worker at a water utility whose wage has been halved to 900 euros and has two unemployed sons.

"This austerity is making all of Europe's south rebel, the euro will be destroyed. We are asked to pay for what our politicians have embezzled."

Greece is stuck in its worst downturn since World War Two and must make at least 11.5 billion euros of cuts to satisfy the "troika" of the European Commission, European Central Bank and IMF, and secure the next tranche of a 130-billion-euro bailout.

"Agreeing to catastrophic measures means driving society to despair and the consequences as well as the protests will then be indefinite," said Yannis Panagopoulos, head of the GSEE private sector union, one of two major unions that represent about 2 million people, or half of Greece's workforce.

LENDERS DEMAND AUSTERITY

European Union leaders will try to bridge their differences over plans for a banking union at a two-day summit which starts on Thursday. No substantial decisions are expected, reviving concerns about complacency in tackling the debt crisis which exploded three years ago in Greece.

The austerity policies being pursued in Europe's indebted Mediterranean countries at the behest of Germany and other rich euro zone members will drive the euro apart, protesters warned.

"This can't go on. We sure need measures but not as tough as the ones (German Chancellor Angela) Merkel is asking for," said Dimitris Mavronassos, a 40-year-old shipyard worker who has not been paid for six months.

The strike brought much of the country to a standstill. Ships stayed in port, Athens public transport was disrupted and hospitals were working on emergency staff, while public offices, ministries, bakeries and other shops were shut.

Five separate marches were expected to converge later on Thursday in the central Syntagma square, where rallies have ended in clashes between police and protesters in the past. Fences were put up outside parliament.

Newspaper kiosk owners, lawyers, taxi drivers and air traffic controllers were among those protesting over the cuts, which include further drastic reductions in welfare and health spending.

Opinion polls show rising anger with the terms of the bailout keeping the economy afloat, and Greeks becoming increasingly pessimistic about their country's future.

"The new, painful package should not be passed," the ADEDY public sector union said in a statement.

"The new demands will only finish off what's left of our labour, pension and social rights."

But with Greece due to run out of money next month, Athens has little choice but to push through the austerity package being discussed with lenders.

Greece and inspectors from the troika say they have agreed on most issues. Athens is expected to secure aid needed to avoid bankruptcy given EU determination to avoid fresh market turmoil threatening bigger economies such as Spain and Italy.