Athens erupts as Greek austerity plan passes

The Greek parliament approved new spending cuts and taxes Friday aimed at defusing the country's debt crisis, while protesters fought with police in the streets of Athens.

The violence came as Prime Minister George Papandreou went abroad to seek European leaders' support for his efforts to address the country's debt crisis.

He met in Luxembourg with Prime Minister Jean-Claude Juncker, head of the group of eurozone finance ministers, and was scheduled to meet with German Chancellor Angela Merkel in Berlin later in the day.

In Athens, riot police used tear gas and baton charges to disperse rioters who chased the ceremonial guards in 19th-century kilts and tasselled garters away from the Tomb of the Unknown Soldier outside the parliament, while a top trade union leader was roughed up by left-wing protesters.

It was the biggest outburst of violence since Greece's debt crisis escalated late last year. Police say they arrested five people, and seven officers were injured.

Greece's financial troubles have shaken the European Union and its shared euro currency, whose rules were supposed to prevent governments from running up too much debt.

Higher taxes, lower public-sectorsalaries

Up to 7,000 demonstrators gathered outside as legislators debated the austerity package, which aims to save the equivalent of $6.7 billion Cdn with measures including higher consumer taxes and cuts to public-sector workers' pay of up toeight per cent.

Demonstrators attacked the two military guards and their escorting officers, smashing windows and kicking the guard posts. Earlier, the head of Greece's largest trade union, Yiannis Panagopoulos, traded blows with left-wing protesters who attacked him while he was addressing the crowd. He was then whisked away, bloodied and with torn clothes.

Panagopoulos's union and the umbrella civil servant union had called work stoppages for Friday to protest the austerity measures, while hospitals, schools and public transport were closed down.

Further violence broke out later Friday in Athens, with masked youths attacking riot police inside the Council of State, Greece's highest administrative court, and trying to break into the Labour Ministry. Rioters also smashed the glass fronts of two banks, two hotels, a mobile phone shop and a fast-food restaurant.

An earlier protest ended peacefully, while there were smaller clashes during two protests in Thessaloniki, Greece's second-largest city.

The centre-left government says it is seeking total savings of $22.4 billion Cdnthis year, to reduce a bloated budget deficit of some $42 billion that is over four times the EU limit as a percentage of annual output.

But the newly approved law hit a snag later Friday as striking Interior Ministry employees occupied the government printing press, in a bid to stop the cutbacks coming into force. Under Greek law, all new legislation must be published in the Government Gazette issued by the printing office before it takes effect.

It was unclear how long the protesters intended to stay in the building.

The cuts are key in convincing bond markets to loan the country money and to win support from the European Union.