''There is a still a feeling of nervousness around the Greece rescue package and problems inthe peripheral economies,'' Giles Watts, head of trading at City Index, told Reuters.Earlier in the day, dozens of protesters from the Communist Party broke the locks at theentrance to the Acropolis, the country's most famous tourist attraction, and hung bannerssaying: ''Peoples of Europe - Rise Up.''The Socialist government of Prime Minister George Papandreou on Sunday announced belt-tightening measures intended to save ¤30 billion, or $39 billion, over the next three years. The plan is part of an effort to clear the way for a ¤110 billion rescue package fromthe European Union and the International Monetary Fund aimed at preventing the country from defaulting on its debt.The measures, including freezes in public sector salaries, cuts in pensions and higher salestaxes, amount to a cultural revolution in the social contract between state and citizen.Public sector workers, including teachers and hospital employees, began striking Tuesday. A nationwide general strike planned for Wednesday aims to bring services like publictransport to a halt across the country.Some analysts said the strikes could mark the beginning of a long hot summer of socialunrest that threatened to unhinge desperately needed economic changes and couldundermine the country's recovery by stifling growth.But thus far the demonstrations have been largely peaceful and muted by Greek standards,suggesting that a majority of Greeks are resigned to the fact that there is little choice otherthan to wait and endure
David Jolly reported from Paris. James Kanter contributed reporting from Brussels.
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Japanese Stocks Tumble as Greek Crisis Reverberates(May 5, 2010)STOCKS AND BONDS; As Markets Slip, Worries About Borrowing in Europe(May 5, 2010)NEWS ANALYSIS; Bold Stroke May Be Beyond Europe's Means(May 5, 2010)Greek Unrest Raises Fears About Impact on Bailout(May 5, 2010)
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