Thessaloniki, Greece - Thousands of people marched in the northern port city of Thessaloniki Saturday to protest the ruling conservative government's austere economic reforms ahead of elections next month. More than 10,000 people marched through downtown Thessaloniki towards the International Trade Fair where Greek Prime Minister Costas Karamanlis was giving a speech on the state of the economy.
Karamanlis, whose conservative administration has been plagued with scandals, called a snap general election October 4, which was needed to deal with the economic downturn.
In calling the election, Karamanlis said he sought a fresh political mandate to deal with the difficult years ahead for the fragile Greek economy.
The conservative leader promised that if he won his third mandate in almost six years he would freeze public sector pay and hirings and continue privatizing state companies in an effort to cut public debt.
"We face two very difficult years ahead, which will sharply hit tourism, shipping, trade and construction," Karamanlis said.
Greece, one of the euro zone's weakest economies, is sliding into recession this year.
Karamanlis sold off state companies such as Olympic Airlines and increased taxes to decrease the country's widening budget deficit.
Shouting anti-government slogans, thousands of union workers marched through Thessaloniki in three separate marches.
Riot police fired tear gas to disperse the crowds after 50 hooded protesters began hurling Molotov cocktails, bottles and rocks at officers, destroying store fronts, traffic cameras, banks and ATM machines in their path.
Police also clashed with protestors outside the Turkish Consulate after they attempted to damage the entrance. Reports said 25 people were arrested.
Karamanlis is midway through his second four-year term, which would normally end in 2011. However, the main opposition Socialists had threatened to force an early vote in March when parliament is to elect a new president, requiring a two-thirds majority.
By announcing snap elections, Karamanlis officially launched a difficult, month-long election campaign where the ruling conservatives are trailing the main opposition in polls.
A recent survey published in center-left To Vima newspaper gave the Socialists a 5.7-to-6.7-point lead.
Main opposition Socialist leader George Papandreou called the election announcement by Karamanlis an admission of his failure in dealing with the country's problems.
The conservatives, who currently have a one-seat majority in the 300-member parliament, have been hit by months of scandals and Greece's worst riots in decades.
Their popularity has sunk further after recent wildfires hit the Greek capital last month.
