Shipyard demo erupts as riot police called in

More than 100 protesters forced open the entrance to the ministry complex, blocking the entrance to the general staff building.

Riot police were called in to force back the demonstrators, who were demanding meetings with ministry officials.

Workers from the Skaramanga shipyards, which deals mainly with military contacts, said they have not been paid in months.

Scuffles broke out as protesters attempted to push through the police cordon protecting the entrance to the main building.

Several dozen demonstrators were detained for questioning by police, prompting another protest outside police headquarters.

The coalition government is currently preparing a new austerity package which has been demanded by the troika of bail-out lenders.

Finance Minister Yannis Stournaras said on Wednesday that there were still considerable differences between the government and debt inspectors from the International Monetary Fund, European Commission and European Central Bank over the package.

A fresh dispute has emerged over benefits cuts and comes just days after inspectors rejected the offered mix of billions of euros of spending cuts and tax rises, demanding an increase in cuts of at least another €1bn (£800 million).

Government officials now say that the EU might hold an extraordinary summit in November to approve the €31bn (£25bn) aid instalment, most of which will go toward recapitalising the country's banks.

Greece has enough cash reserves to last until the end of November.

But delaying the cash injection to the banks is starving the economy of much-needed liquidity.

Any delay also means the government won't be able to start paying €7bn (£5.6bn) it owes to private-sector contractors.

Troika inspectors are now pushing for a fresh round of hugely unpopular labour reforms that had been earlier rejected by the government, telling Labour Minister Yannis Vroutsis to reduce compensation paid to sacked private-sector workers.

Other demands include dropping an automatic 9 per cent pay rise to employees after three years of employment and extending the working week from five days to six.