MercoPress. South Atlantic News Agency

Greek striking public sector workers blockade ministries and paralyze Athens

‘There is very big turmoil and very deep anger in society’ warned union leader Ilias Iliopoulos

Greece’s striking public sector workers blockaded the entrance to several ministries in Athens on the second anniversary of the ruling Socialist party's election victory, disrupting talks with EU and IMF inspectors on the next aid tranche.

Despite more than six hours of talks, the Euro zone meeting produced few concrete steps to tackle the deepening sovereign debt crisis, raising expectations that Greece will end up having to default on its 357 billion Euros of debt.

Greek public sector workers blocked the entrances to several ministries Tuesday to protest against austerity measures, disrupting talks with EU and IMF inspectors on a vital aid tranche.

The Socialist government, which came to power two years ago on a pledge to help the poor and tax the rich, is facing growing anger from voters hit hard by a series of tax hikes and wage cuts agreed to stem a debt crisis.

Athens admitted on Sunday that it will miss its 2011 deficit target despite the harsh austerity steps and approved unpopular plans to put tens of thousands of public sector workers into a “labour reserve” on the road to redundancy.

“There is very big turmoil and very deep anger in society,” the secretary general of public sector union ADEDY, Ilias Iliopoulos, told reporters as he took part in the protest, which blocked access to several buildings including the Finance Ministry.

“Today's protests mainly have to do with the labour reserve and firings. But there is also the new budget which brings new measures against the people,” he said, a day before a 24-hour strike by the public sector union and state utility workers.

Fears of a debt default drove the Athens stock exchange to an 18-year low Tuesday. Greek bank stocks went down as much as 8%.

Protesters also blocked the entrances of other public buildings including the labor, agriculture, culture and development ministries, a police official said. They did the same on Thursday and Friday, when an EU/IMF inspection of Greece's finances started.

The Greek government admitted on Monday the country will remain in recession next year, threatening its efforts to put its finances back on track. The economy will suffer a fourth consecutive year of contraction, shrinking by 2.5% in 2012 after an expected 5.5% slump this year, according to the 2012 budget draft.