Greek PM To Form New Government Amid Riots

The Greek Prime Minister has announced he will reshuffle his cabinet amid violent and chaotic protests against his austerity plans in Athens.

Earlier reports suggested George Papandreou was prepared to step down with Net TV saying he told opposition leader Antonis Samaras: "If I am the problem, I am not tied down to my chair. I can discuss everything, even a national unity government."

But in a televised address he has said he will "continue on the same course".

"This is the road of duty, together with PASOK's parliamentary group, its members, and the Greek people," he said.

"Tomorrow I will form a new government, and then I will ask for a vote of confidence."

The government reshuffle comes as officers in riot gear struggled to regain control of the capital's main square, where masked demonstrators demolished walls, throwing bricks, bottles and furniture.

The protest began peacefully at first light as organisers tried to form a human circle around the Parliament building.

Their aim was to prevent MPs debating an austerity package designed to rescue Greece's battered economy.

But through the night the police erected a 'steel ring' around the building with special metal gates thwarting efforts to halt parliamentary business.

The demonstration - estimated at 20-50,000 strong - was called to coincide with a one-day national strike which paralysed most public services and some private companies.

But different factions within the protest movement turned on each other. Fight and arguments broke out with many people blaming masked anarchists carrying clubs and 'hi-jacking' the event.

Unemployed economist Xenophon told Sky News: "I am deeply opposed to the cuts this government is trying to push through and we the People are determined to stop them.

"But violence has no place here whether it be from demonstrators or the police."

A hotel employee who joined the demonstration told us he felt that change was "in the air."

"I don't see how the politicians can go on defending these cuts. Something has to change."

Greece's Socialist-led government is trying to save 6.5bn euros to meet the demands of an international bail-out by the EU and the International Monetary Fund.

A first tier of austerity measures enforced last year plunged the country into a deeper-than-expected recession, with the economy contracting 5.5% in a year.

Unemployment has shot up to over 16%, with the rate exceeding 40% among young Greeks. Meanwhile tax revenues have plunged, exacerbating the funding shortfall.

Eurozone ministers have set a June 20 deadline to come up with a new Greek bailout plan.

But the measures have led to a series of mass protests and intense social upheaval.

This is the third strike to see millions walk out of work since the start of the year, disrupting sea, rail and public transit services across the country.

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Source: http://uk.news.yahoo.com/greek-strike-amid-brutal-budget-cuts-021745149.html

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