Angry protests go on in Athens; Merkel avoids aid commitment

BERLIN - German Chancellor Angela Merkel avoided giving debt-plagued Greece a commitment of financial assistance yesterday, as Athens was rattled by more strikes and violent protests by unions outraged by harsh economic austerity measures.

The Greek Parliament yesterday approved spending cuts and taxes aimed at defusing the country's debt crisis, while protesters opposed to the measures fought with police outside. Prime Minister George Papandreou went abroad to seek European leaders' support.

Merkel met with Papandreou and said the country had not made any request for financial support and she called for an end to market speculation that the indebted country will default.

Papandreou's visit to Berlin was part of a tour that started in Luxembourg and will take him to Paris tomorrow.

"Germany can express its solidarity," Merkel said, adding that she made it clear that "we are here to help, show understanding."

Lawmakers in Greece approved the new austerity package worth $6.5 billion but faced fierce union opposition to the plan, with strikes yesterday grounding flights for four hours and halting public services.

The center-left government said it was seeking a total of $21.87 billion in savings this year to reduce a budget deficit of about $41 billion that is over four times the EU limit as a percentage of annual output.

Despite raising $6.83 billion from a successful 10-year bond issue Thursday, Athens remains under intense pressure from high borrowing rates.

Merkel called the new program an "inordinately important step" even as Greeks protested vehemently against it.

Earlier yesterday in Greece, riot police used tear gas and baton charges to disperse rioters who chased the ceremonial guards in 19th-century kilts and tasseled garters away from the Tomb of the Unknown Soldier outside Parliament. A top trade-union leader was roughed up by left-wing protesters, while rioters smashed banks and storefronts.

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

Papandreou defended the austerity measures.

"We had to take difficult decisions," he said in Berlin, "but these decisions were necessary if we are to lead our country out of the crisis."

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

Papandreou has warned that Greece could go outside the EU and request financial help from the International Monetary Fund unless it gets a commitment of support.

He seemed satisfied with Merkel's pledge.

"We need political and moral support," Papandreou said, "and we got that today from the German government."