Sky News
November 18, 2011

Violence has broken out in Athens, New York and across Italy as anger caused by economic strife boils over on the streets.

In Athens, masked youths threw firebombs at police outside parliament.

Police responded with tear gas and stun grenades, temporarily halting the demonstration of around 30,000 people. No injuries or arrests have been reported.

Greeks rallied to mark the 38th anniversary of the day in 1973 when military tanks quashed a student rebellion at the Athens Polytechnic.

Some 7,000 police officers were deployed as the city braced itself for anti-austerity demonstrations arising from the annual march.

Authorities feared the threat of trouble this year was much more acute thanks to anger at the price being paid by ordinary workers for the country's economic crisis.

Greece has already had to change its government as it battles to introduce sweeping austerity measures in order to stay solvent and part of the eurozone.

The International Monetary Fund said it was awaiting 'broad political support' before giving Greece more aid.

Opinion polls in the country suggest that three in four Greeks back new prime minister Lucas Papademos, a former banker.

Earlier he said: "Greek people and above all the young can overcome the crisis and achieve national targets if they are united and act decisively."

Across the atlantic, hundreds of demonstrators gathered in New York's famous Wall Street financial district, with some trying to stop workers getting into their offices.

Demonstrators angry at budget cuts clashed with police across Italy, where transport strikes left buses and trains stranded.

Police in riot gear clashed with students in Milan, while in Palermo, Sicily, protesters hurled eggs and smoke bombs at a bank. They also threw stones at police who hit back back with pepper spray and charged demonstrators who were trying to occupy another bank.

  FTSE 100 1-Week Chart

One protester was reported to have suffered head injuries.

In Rome, hundreds of students gathered outside Sapienza University, while others assembled near the main train station ahead of a planned march on the Senate.

The protests came as new Italian Premier Mario Monti unveiled his economic strategy ahead of a confidence vote in the new technocrat government.

In his maiden speech to parliament, Mr Monti outlined pension and labour market reform, a crackdown on tax evasion and other measures to combat Italy's drastic debt.

Mr Monti's cabinet took the place of the government led by controversial media mogul Silvio Berlusconi, who stepped down last week after unrelenting pressure from markets worried about Italy's escalating public debt and stubbornly stagnant economy.

10 year debt yields at 10:00 GMT

 

As the protests were taking place Spain looked as though it could become the next victim of the economic crisis in the eurozone as the cost of state borrowing soared to a dangerous new high.

Ten-year bond yields jumped to a record high of 6.8% - with 7% seen as the territory for a financial bailout.

The gap between French and German bonds is wider than ever, with concerns growing that France could lose its triple-A credit rating.

Investors have shied away from buying debt in countries in the eurozone because of the potential risks associated with nations such as Italy, Spain and France.

Manoj Ladwa, senior trader at ETX Capital, said: "Equity markets across Europe are weak today as contagion takes a firm grip.

"European indices are down sharply with investors offloading holdings as they lose confidence in EU ministers being able to stem the crisis."