Violent clashes in Athens during anti-austerity protest

Violent clashes broke out Wednesday in central Athens between riot police and hundreds of protesters who went on a rampage burning cars, trashing luxury hotels and setting a ministry building on fire, DPA reported.

The clashes broke out as some 20,000 protesters marched to parliament during a nationwide strike against new labour reforms in the debt-ridden country.

Police fired tear gas and flash grenades as the violence escalated outside parliament with protesters hurling fire bombs, rocks and bottles.

Angry protesters could be seen torching at least three cars and trashing the fronts of a row of luxury hotels in the main Syntagma Square.

Earlier, hooded protesters set the Finance Ministry on fire. Thick smoke engulfed the area before firefighters rushed to the scene and quickly extinguished the blaze.

The 24-hour nationwide strike in Greece on Wednesday saw all schools, hospitals and public sector services shut down in protest after the Socialist-led parliament passed a new round of austerity reforms.

Athens International Airport said all flights to and from Greece were cancelled, whilst ships remained at anchor and all train travel came to a halt.

The bank workers' union had already started a 48-hour strike on Tuesday.

Parliament passed emergency legislation late Tuesday in a 156 to 130 vote that dictates a fresh round of pay cuts, involuntary staff transfers at state companies and relaxation of labour laws.

Gross monthly salaries at state-owned companies are capped at 4,000 euros, while state salaries over 1,800 euros are to be cut by 10 per cent under the new law.

Taxis are scheduled to join the action with a four-hour work stoppage after the government decided to scrap a 1-euro surcharge added to fares. Christmas bonuses would not be paid this year due to the impact of the economic crisis.

The country's journalists called a 24-hour news blackout and a 48- hour strike on Friday and Saturday.

Traffic was snarled for hours in Athens on Tuesday during a 24- hour strike by public transport workers, forcing people to their cars. Another 24-hour public transport stoppage is slated for Thursday.

Tons of uncollected garbage were piling up in greater Athens after a week of work-to-rule action by staff at the main landfill, which has slowed garbage collection in the region. Protesters are demanding the renewal of short-term work contracts for roughly 100 employees.

Athens is implementing a wave of economic reforms as part of a bid to slash public spending in exchange for a 110-billion-euro (150- billion-dollar) rescue package from the European Union, European Central Bank and International Monetary Fund (IMF).

The government announced the labour overhaul after talks last week with top officials from the EU and IMF, which urged Greece to speed up tax reforms.