Greek protests threaten economy

A general strike will be staged in Greece today, Wednesday, in protest at the strict austerity measures imposed on Athens by the euro countries and the International Monetary Fund. Such a protest could have dire consequences, writes the business daily Hospodářské noviny: "The unions are striking in Athens even as the Union lends money to Greece. Even when the austerity programme takes legal form there can be no telling how markets would react to expressions of massive resistance and violence in the streets. ... And how to avoid an outflow of savings from Greek banks? Even debt-ridden Athens guarantees depositors' savings. What happens if the Greek banking system collapses? The creditworthiness of Greece's bank guarantees ultimately depends on the strength of the state finances."

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