Greek Protests Intensify, But So Is Pressure on Europe’s Banks

06 October 2011

Protesters shout slogans during demonstration in Athens, Oct. 5, 2011

This is the VOA Special English Economics Report.

Violent protests in Greece have added to tensions over the debt crisis affecting Europe.

(SOUND: Protests)

Tens of thousands of people marched in Athens Wednesday to protest the government’s latest proposals for budget cuts. The deep spending cuts have been demanded by the nation’s creditors.

Many government workers and union activists oppose the measures, which include plans to cut thirty thousand government jobs. Greece also wants to cut wages for government workers and increase taxes.

Socialist Prime Minister George Papandreou has struggled to win support from his own party to pass the unpopular legislation. And public anger has been widespread. The two largest labor unions in Greece have called for another strike on October nineteenth.

This week, the Greek government announced that it would not meet the deficit reduction targets it had promised its lenders. This increased doubts that Greece will be able to pay its creditors. And it has European bankers worried. Many European banks hold Greek debt securities.

Finance Ministers from countries using the euro met in Luxembourg early this week to discuss issues including the Greek debt crisis. European Union Monetary Affairs Commissioner Olli Rehn said it is important to examine the measures that Greece has in place.