Greece in belt-tightening budget despite protests

ATHENS, Greece (CNN) -- Greece passed a belt-tightening budget Monday, despite weeks of nationwide protests over the economy and jobs enflamed by the fatal shooting of a teenager by police earlier this month.

The center-right government is fighting to reduce the country's debt, which is among the highest in Europe.

Opposition leader George Papandreou blasted the government during the marathon five-day debate on the budget, saying its economic program was part of the problem not a solution.

"This budget will not lead us out of the crisis. It is, rather, part of the problem and lack of credibility facing the government," said Papandreou of the Socialist PASOK party.

Prime Minister Kostas Karamanlis attacked Papandreou by name during the acrimonious debate, the official Greek news agency ANA-MPA reported, accusing the Socialist leader of harming the country's international reputation with comments made to the press.

Karamanlis said Papandreou was "spreading the notion that the slogan in Athens is 'millions of dollars to the bankers and bullets for the pupils,'" ANA-MPA reported.

Labor unions say the new budget does too little to protect Greeks amidst the global economic downturn, which is already affecting the country.

Riots and demonstrations flared in Greece on December 6 when a police bullet killed 15-year-old Alexis Grigoropolous, and protests have continued almost daily since then.

Students have led demonstrations against what they call police brutality, while labor unions have joined in to protest wage freezes, the rising cost of living, pension cuts and the fear of mass redundancies.

Hundreds of people have been arrested and shops and banks in the capital, Athens vandalized. The damage from the riots has cost an estimated $1.3 billion, making them the most destructive in Greece in decades.

-- Journalist Anthee Carassava contributed to this report.

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