Greek transport workers resume strike over budget cuts

Athens metro, tram and suburban rail will be shut down by the stoppage. Buses and trolleys have stopped operating for six and five hours, respectively, from 11 a.m. local time.

The Greek public transport sector came to a halt on Thursday with commuters and foreign visitors facing delays of several hours at airports, and long queues at bus stops, and traffic jams across the city.

The Greek government announced a new austerity package on Wednesday, including cuts in public-sector salaries and pensions, furloughs for 30,000 state employees through the end of the year, and changes in the tax system, in response to the demands of international lenders.

The government is struggling to convince EU/IMF lenders that the country is on a path to recovery. If it fails, Greece could run out of cash.

Representatives of the European Commission, the European Central Bank and the International Monetary Fund have yet to return to Athens to resume their review of the Greek economic situation.

Their conclusion is key to the EU and IMF unlocking a new loan tranche, without which the country could go into default as early as mid-October.

German Chancellor Angela Merkel said on the weekend euro-region leaders must erect a firewall around Greece to avert a cascade of market attacks on other European states, which could threaten the break-up of the currency area.