ATHENS, Greece — Greek labor unions announced a new general strike to protest pension reforms next week, as government officials waited Wednesday for the first installment of a euro110 billion ($140 billion) rescue package designed to stave off bankruptcy.
On Wednesday, EU officials also advocated unprecedented scrutiny of countries’ spending plans even before they go to their respective parliaments for approval, and serious financial penalties for countries that break the rules.
Greece’s two main public and private sector unions set a walkout for May 20 — a day after Greece must repay some euro9 billion ($11.4 billion) in expiring debt, using loans from its eurozone partners and the International Monetary Fund.
The Mediterranean country’s acute debt problems, resulting from years of overspending and falsified accounts, battered global markets and weakened the euro. In response, the European Union and the IMF threw together a euro750 billion ($952.35 billion) standby package early Monday to prevent the debt crisis from spreading and protect the common euro currency. That package came in addition to the billions already pledged to Greece.
Greek finance ministry officials said a first installment of the international rescue package — euro5.5 billion ($6.98 billion) from the IMF — was due later Wednesday. Athens also expects euro14.5 billion ($18.4 bllion) requested from the European Union to arrive just before the May 19 deadline.
Next week’s strike will cancel flights, ferry and rail services, leave hospitals on emergency staff and close schools and public services. There will also be demonstrations in major Greek cities, raising fears of further street violence.
During riots in Athens last week, three workers died as a bank was torched by demonstrators. Some 100,000 people took to the streets to protest austerity measures the center-left Socialist government took to secure the international bailout.
Unions say those earning low wages will suffer disproportionately from the proposed increase in retirement ages and pension cuts. The reforms follow public service pay cuts and consumer tax increases that the government says will save euro30 billion ($40 billion) over the next three years and bring the budget deficit under the EU ceiling of 3 percent of annual national output — compared to Greece’s current 13.6 percent.
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