Riot police fire tear gas at 17,000 anti-cuts protesters in Greece as prime minister pledges to avoid 'catastrophic' bankruptcy



George Papandreou says country will meet fiscal targets despite recession

Riot police fired tear gas at thousands of Greek protesters today as they took to the streets to protests against the Government's austerity measures.

Ahead of a keynote speech by the Greek Prime Minister George Papandreou , more than 17,000 angry citizens were dispersed by officers in the city of Thessaloniki.

Police said that they came under attack from protesters using flare guns, stones, sticks and even a petrol bomb, and they arrested two people while detaining another 100. Two people were injured.

Riots: Protests by anti-austerity protesters on the streets of Greece's second city lasted long into the night as thousands took to the streets to protest against the Government Taking cover: A pair of riot police use their shields to protect themselves from rocks being thrown by this masked man in central Thessaloniki

Burning: A group of riot police stand guard after the protesters set fire to objects in the streets

In Athens, police fired stun grenades to disperse around 400 protesters who tried to block a main road outside Parliament. The protesters retaliated with firebombs that they lobbed at officers over passing traffic.

They were protesting against Mr Papandreou's Socialist government's austerity measures which include cutting pensions and salaries while raising taxes and retirement ages.

Speaking this evening, Mr Papandreou promised to meet ambitious fiscal targets for 2011 and save the debt-crippled country from bankruptcy.

He also pledged to press on with vital reforms to improve fiscal discipline and secure continued payment of international rescue loans.

Weapons: Police said that the groups used flare guns, stones, sticks and even a petrol bomb to attack them

Kicking off: A man lashes out with his feet at a group of riot officers

In a nationally televised address he said: 'We will push through all the major changes our country has needed for years.

'And we will take whatever other decisions are needed, we will do whatever is necessary to keep the country on its feet.'



Papandreou added that his main concern was to keep the country solvent.



'We don't have the right to abandon this effort halfway through,' he said. 'Because if it remains half-done, (our) sacrifices will have been in vain.'

Manhandled: This female protester is led away by a riot officer, while another uses her hands to slap this officer who is guarding the front of a shop



Arrested: A man is dragged away by five riot officers, one of 94 people reportedly detained by officers

Masked: Two men thrown pieces of street furniture at riot officers , while another man uses stones as weapons



This came despite Finance minister Evangelos Venizelos being forced to deny rumours about that the nation's impending bankruptcy.

Venizelos insisted that the country could still pull through, although the proof would not come in the immediate future.

He said: 'Whoever believes that Greece has been broken or has no hope is clearly out of touch with reality,' he said.

'The two coming months are crucial for the very existence of our country, these are two months whose every day counts as a year in terms of effort.'

Speech: Greece's Prime Minister George Papandreou addresses his nation last night, where he promised to meet ambitious fiscal targets for 2011

Placard: A Greek taxi driver holds a poster depicting Greek Prime Minister George Papandreou in the streets of the city

By the end of October, Greece has to conclude talks on a complex bond swap deal under which private holders of its debt - mostly banks and pension funds - will take a loss on their holdings in return for new, more secure bonds.

It must also persuade the European Union and the International Monetary Fund, which are providing the bailout loans, that it is making sufficient progress with fiscal discipline, reforms and privatisations.

If Athens fails in that, the country will not receive the next eight billion batch of euro loans, and go bankrupt in weeks.

Marching: Members of the labour union PAME shout slogans during an anti-austerity protest in Athens

Confrontation: A Greek police officer argues with a protester during a demo in Greece's second largest city of Thessaloniki

Meanwhile, Chancellor Angela Merkel has urged Germans to have patience with Greece, drawing a parallel between the financial reforms that Greeks need to implement and Germany's reunification process two decades ago.

Merkel told the Tagesspiegel am Sonntag newspapers that Athens must keep up with reforms if Greece is to continue to receive support, but conceded change would not happen 'overnight.'

She compared the process in Greece to that of unifying the former East and West German nations in the 1990s, recalling how long it took 'to build up new bureaucratic structures, to dissemination information and to privatize.'