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Greece strikes continue. Police fire stun grenades as blackouts occur

Riot police fire stun grenades and rolling blackouts occur as some groups in Greece strike.

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Demonstrators clash with riot police during a protest against the austerity measures announced by the Greek government earlier this month, in central Athens, on March 16, 2010.

NEWSCOM

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Police scuffled with demonstrators in Athens late Tuesday as the government faced fresh opposition to its austerity measures, despite signs that markets are beginning to respond positively to Greece's drastic cuts.

Riot police fired stun grenades to disperse rock-throwing youths outside parliament during a brief flare-up of violence after 2,000 people took part in a protest march.

Greece's state power company began rolling blackouts — affecting parts of the northern city of Thessaloniki and other places, as well — after workers at the utility went on a 48-hour strike to protest pay cuts.

State hospital nurses staged a one-day strike and 400 union members demonstrated peacefully outside the health ministry in Athens.

Greece is under pressure from the European Union to control its finances, after its mounting debts hit confidence in the euro and jolted world markets.

Athens has pledged to slash its budget deficit from an estimated 12.7 percent of gross domestic product in 2009 to 8.7 percent this year, and bring it under the EU limit of 3 percent in 2012.

The government announced a €4.8 billion austerity package this month, including cuts in civil servants' pay, pension freezes and consumer tax increases. A sales tax hike from 19 to 21 percent this week has increased the cost of fuel and other consumer goods and services. The draft tax bill has been submitted to Parliament for discussion.

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