Business News

Greek public transport paralysed as workers strike over reforms

Jan 13, 2011, 13:39 GMT

Athens - Greek public transport services were paralysed on Thursday after bus and metro workers went on a 24-hour strike to protest against government restructuring plans. Urban transportation companies in Athens, which are all state- owned, lose a total of approximately 600 million euros (794 million dollars) every year - a deficit blamed mostly on mismanagement and high wages. The firms are seen as a huge drain on state funds at a time when the government is trying to slash the budget deficit. The European Union and International Monetary Fund, which are overseeing Greece's cost-cutting efforts as part of a 110-billion- euro bailout for the debt-ridden country, have been pressuring the Greek government to restructure public transport. The Ministry of Transportation is drafting a bill that would merge transport companies and increase fares. The proposal is expected to be put for a legislative vote next month by the ruling Socialists, which hold a majority in the 300-seat parliament. Wednesday's transport strike caused traffic to back up for hours, as commuters were forced to use their cars to get to work. More than 300 demonstrators marched to the Finance Ministry, chanting anti- government slogans.

Business News

Greek public transport paralysed as workers strike over reforms

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