The Greek government has announced further cuts. The move comes a day before a planned public sector strike in protest at savings measures announced earlier.

These proposals include rasing the pensionable age by two years to an average of 63 and cutting bonuses for government workers.

Air traffic controllers are due to join Wednesday's strike, halting flights to and from Greece. Government offices and schools will be closed and hospital staff will only work on emergency cases.

The European Union is monitoring Greece closely because of its enormous financial problems. The Greek budget deficit has risen over recent years to nearly 13 percent of the country's gross domestic product. The EU limit is officially just three percent.