Greek transport staff walk to protect rail services

The 11am to 4pm strike hit intercity trains and forced the cancellation of services to Bulgaria, as well as the metro and buses in Athens.

Air traffic was not affected.

Prime Minister George Papandreou's Panhellenic Socialist Movement administration insists that it must "streamline" the Hellenic Railways Organisation - and the capital's bus, underground, urban rail and tram systems - in order to reduce the government deficit from around 14 per cent of gross domestic product in 2009 to under the European Union-mandated limit of 3 per cent by 2014.

In May Mr Papandreou assured officials from the International Monetary Fund, European Central Bank and EU Commission that he would implement the transport "reforms" - along with a raft of other welfare cuts - in return for an €80 billion (£65bn) loan.

On Monday IMF, ECB and EU Commission representatives pored over the government's books to ensure that it was sticking to the austerity programme.

The following day Greek lorry drivers went on strike over Mr Papandreou's plan to deregulate the country's haulage industry.

And unions were poised to launch a season of rallies and strikes this weekend in Thessaloniki, where Mr Papandreou is due to outline his economic agenda for the coming months.

ADEDY public-sector union general secretary Ilias Iliopoulos said: "People are starting to feel the full force of austerity."