ATHENS: Greece faced a paralyzing general strike yesterday as unions take to the streets to protest at a new round of sweeping austerity cuts to be brought in next month to unlock vital EU-IMF loans.
As 5,000 police deployed around the capital, hundreds of people began to gather for separate demonstrations called by left-wing and Communist unions.
The strike action is expected to bring the country to a standstill, disrupting flights, confining ferries to port, halting train services and shutting down the Greek public sector, including museums.
Traders have also been called to close their businesses for the day but with a deepening recession to consider, many shop owners opted to remain open.
"It's mostly civil servants who are on strike," Irene, a woman in her 30s who runs a printing shop, told AFP. "My staffers may arrive late but they won't strike, it's never helped us any."
It is the third general strike this year but the first to test the resolve of the coalition government that took over in June to keep the recession-mired country in the euro zone as it rushes to finalize a package of some 11.5 billion euros ($15 billion) in extra cuts.
Another two billion euros must be raised from taxes under the austerity measures due to be introduced to parliament in early October by the three-party coalition headed by conservative Prime Minister Antonis Samaras.
The new cuts will affect thousands of civil servants who have already suffered salary reductions of up to 40 percent over the last two years.
The age of retirement is also expected to be raised from 65 to 67, just two years after a previous hike.
The austerity package is designed to unblock access to 31.5 billion euros in loans, part of Greece's massive rescue package from the so-called troika of creditors — the EU, the IMF and the European Central Bank.
Athens needs the money to pay state salaries and pensions, recapitalize Greek banks hit by a state debt rollover and repay over six billion euros owed to private contractors.
But even this latest round of austerity measures might not be enough to get Greece's troubled rescue and reform operation back on the rails.
Unions say that cutbacks to trim the country's soaring deficit have caused record unemployment and a deepening recession now in its fifth year.
"Salaries, pensions and benefits have been cut again and again for 2.5 years and the 'monster' of the debt and deficits remains invincible, constantly demanding new sacrifices," the main unions GSEE and ADEDY said in a statement.
"S0S — save the country, but above all its people," they said in posters strung from lamp-posts across the capital.
Cutbacks have caused mounting anger in other struggling economies in the euro zone's southern flank.
Over 100,000 people protested in Portugal earlier this month, and on Tuesday more than 60 people were injured in Madrid in clashes near parliament.
International Monetary Fund chief Christine Lagarde had warned on Tuesday that delays in implementing Greece's bailout program, including privatizations, had expanded the country's financing shortfall.
"As a result of the major delay in privatization... and the limited revenue collection, there's a financing gap, especially if factoring in more time," Lagarde told an audience at the Peterson Institute for International Economics.
"We don't only need 11.5 billion euros of cuts; we need a series of cuts and additional revenues in order to fill in the fiscal gap," she said.
But on Tuesday Greece's Deputy Finance Minister Christos Staikouras said that Greek bonds held by the ECB could be rolled over to bridge the gap caused by slippage on fiscal targets and state asset sales.
Greece hit by general strike against austerity plan
Greece hit by general strike against austerity plan
Crude oil prices surpass $100 a barrel as the Iran war impedes production and shipping
- 15m barrels of crude oil — about 20 percent of the world’s oil — typically are shipped every day through the Strait of Hormuz
- Iraq, Kuwait and the UAE have cut their oil production as storage tanks fill due to the reduced ability to export crude
CHICAGO: Oil prices have eclipsed $100 per barrel for the first time in more than three and a half years as the Iran war hinders production and shipping in the Middle East.
The price for a barrel of Brent crude, the international standard, was at $101.19 shortly after trading resumed on the Chicago Mercantile Exchange, up 9.2 percent from its settlement price of $92.69 Friday.
West Texas Intermediate, the light, sweet crude oil produced in the United States, was selling for about $107.06 a barrel. That’s 16.2 percent higher than its Friday settlement price of $90.90.
Both could rise or fall as market trading continues.
The increases followed US crude prices jumping by 36 percent and Brent crude prices rising 28 percent last week. Oil prices have surged as the war, now in its second week, ensnared countries and places that are critical to the production and movement of oil and gas from the Arabian Gulf.
Roughly 15 million barrels of crude oil — about 20 percent of the world’s oil — typically are shipped every day through the Strait of Hormuz, according to independent research firm Rystad Energy. The threat of Iranian missile and drone attacks has all but stopped tankers from traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran.
Iraq, Kuwait and the UAE have cut their oil production as storage tanks fill due to the reduced ability to export crude. Iran, Israel and the United States also have attacked oil and gas facilities since the war started, exacerbating supply concerns.
The last time US crude futures traded above $100 per barrel was June 30, 2022, when the price reached $105.76. For Brent, it was July 29, 2022, when the price hit $104 per barrel.
The global surge in oil prices since Israel and the US attacked Iran on March 1 has rattled financial markets, sparking worries that higher energy costs will fuel inflation and lead to less spending by US consumers, the main engine of the economy.
In the US, a gallon of regular gasoline rose to $3.45 on Sunday, about 47 cents more than a week earlier, according to AAA motor club. Diesel was selling for about $4.60 a gallon, a weekly increase of about 83 cents.
The price of natural gas has also climbed, though not as much as oil. It rose about 11 percent last week and ended Friday at $3.19 per 1,000 cubic feet.
If oil prices stay above $100 per barrel, some analysts and investors say it could be too much for the global economy to withstand.
Over the weekend, Israel’s military struck oil depots in Tehran and four oil storage tankers and a petroleum transfer terminal.
Mohammad Bagher Qalibaf, the speaker of Iran’s parliament, said the war’s impact on the oil industry would spiral, warning it soon could become harder to produce and sell oil.
Iran exports roughly 1.6 million barrels of oil a day, mostly to China, which may need to look elsewhere for supply if Iran’s exports are disrupted, another factor that could increase energy prices.
