Soros bets against Euro

[Jan Klimkowski]

Here's Reuter's take on the mood in the Greek streets:

Greek unions to "intensify" struggle, extend strikes
.. Main public sector union vows to intensify struggle
.. President says crackdown on corruption needed
.. Greek way of life has ended, editorials warn
.. Bank shares drop despite ECB collateral move

By Renee Maltezou and Harry Papachristou

ATHENS, May 3 (Reuters) - Greece's main public sector union
vowed on Monday to step up its fight against austerity measures
by broadening strikes that will test the government and its new
deal with the EU and IMF.

The ADEDY union, which represents about half a million
public sector employees, condemned cuts in wages and pensions
and said it would stage a 48-hour walkout starting on Tuesday,
instead of the one-day strike it had planned for Wednesday.

"These measures are a disaster, they will lead to a deeper
recession or even bankruptcy. The government is raiding our
salaries and our pensions," Despina Spanou, a member of ADEDY's
board, told Reuters. "We will escalate protests, we will fight
these policies."

Prime Minister George Papandreou's government unveiled an
austerity deal with the European Union and International
Monetary Fund on Sunday that relies heavily on cuts in the
bloated public sector to reduce a swollen budget deficit.

In exchange, Athens is to receive 110 billion euros in
financial support over three years, a package aimed at calming
fears of a debt default and buying the country time to reinvent
its uncompetitive and debt-ridden economy.

Greece has a history of violent protests and the
government's ability to implement its draconian programme
depends heavily on how the public reacts to the new steps.

"Nobody can be sure how strong the reaction will be," said
Yannis Stournaras, head of the Foundation for Economic Resarch
in Athens. "But the Socialists' strength is that they control
the unions. No other party could pass such a tough programme."

Greek President Karolos Papoulias cautioned Papandreou on
Monday that he would struggle to win over the people unless pain
for average citizens was accompanied by a crackdown on
corruption, which cost the economy an estimated $1 billion last
year according to watchdog Transparency International.

"I am certain the Greek people will respond positively, but
they need to be convinced that justice will be done, that tax
evasion will be wiped out," Papoulias said.

"CRUEL AND INHUMAN"
Outside the presidential mansion where Papoulias and
Papandreou met on Monday, Sampsanis Ioannis, a 49-year old
doctor in a state hospital, said Greeks had had enough.

"I have 5 children, I work all day and I make 1,020 euros
net a month. The measures are cruel and inhuman, people cannot
stand it any more, they will revolt," he said.

Several hundred rubbish collectors marched through central
Athens behind a dozen garbage trucks, holding banners reading
"hands off our salaries" and chanting "parliament is where the
rubbish is".

Greek newspapers displayed a mix of resignation and outrage
at the new steps, which aim to slash the budget deficit to 8.1
percent of gross domestic product (GDP) this year, from 13.6
percent in 2009.

Centre-right newspaper Eleftheros Typos said the government
was telling Greeks that they must die in order to live,
describing the economic medicine it was dispensing as "more
harmful than the disease". Ethnos, a centre-left daily, said the
plans meant "asphyxiation" for the Greek people and a "violent
modernisation" for the economy.

There are precedents for the massive fiscal adjustment that
Greece is undertaking, but economists say the country faces a
tougher challenge because of its weak economy, which is expected
to contract by 4.0 percent this year and 2.6 percent in 2011.

The government's economic shock therapy could lead to
deflation, aggravating Greece's ability to cut its debt
mountain, and put huge pressure on the banking sector.

The European Central Bank pledged on Monday to accept even
junk-rated Greek bonds as security for loans, a move Finance
Minister George Papaconstantinou said ensured banks were
"absolutely shielded and secure".

But Greek banking shares <.FTATBNK> were trading 1.3 percent
lower on Monday.

Standard & Poor's downgraded Greek bonds to junk status last
Tuesday and Moody's could follow suit any day now. It said on
Monday it would conclude a review of Greece's ratings shortly.

http://uk.reuters.com/article/idUKTRE64222U20100503