Greek unions flex muscle against wage cuts

The national strike will ground all flights to and from the country and will also affect state hospitals and schools, tax offices and local government offices.

Civil servants' union ADEDY called the action in protest at plans by the Socialist government to freeze public-sector wages and raise the retirement age as part of an austerity package that has been aggressively promoted by the European Union.

Greece's budget deficit is more than four times the 3 per cent limit dictated by the EU.

The public debt has exceeded 113 per cent of its annual economic output.

Under pressure from the EU - and international financial firms which have ratcheted up Greece's borrowing costs - Athens has announced 2bn euros (£1.76bn) in public spending cuts so far.

Civil servants have been told that they face salary cuts of between 5 and 20 per cent.

On Tuesday, Greece's government unveiled an increase in the average retirement age.

Labour Minister Andreas Loverdos said: "There will be a two-year increase of the limits on the average rate of retirement - namely 63 years on average for men and women by 2015."

At a separate press conference on the same day, ADEDY president Spyros Papaspyros insisted that the government should focus on job creation and making the tax system fairer.

Mr Papaspyros said: "We are aware of the difficult economic situation, but targeting the incomes of employees and pensioners is just the easy way out.

"We won't let the government make the usual suspects pay for the crisis," he vowed.

Mr Papaspyros emphasised that Wenesday day's strike had been called "to defend our dignity, to put an end to our sacrifices on the altar of financial markets."

He said that his members would decide tomorrow whether to call another strike in early March or join one called for February 24 by the GSEE private-sector union.

Together ADEDY and GSEE unite half of Greece's five million-strong workforce.

On Monday, Greece's Prime Minister George Papandreou asked civil servants to accept bonus cuts, saying they "must be the first to set an example."

Sources said the reforms would be difficult to enforce.