A 24-hour strike called by Greece's public sector trade unions yesterday grounded almost 200 flights by domestic airlines and shut state-run banks, schools and hospitals. The strikers were demanding changes in the 2009 draft budget, which is due to be debated in parliament later this week.

The budget includes new taxes and tighter spending policies intended to curb a rising deficit. The finance ministry has warned that fiscal policy may be tightened further because of a projected increase in debt-servicing costs next year, as a result of the global financial crisis.