Greek unions promise strikes

His socialist government has promised to tighten one of Europe's leakiest tax systems and freeze public sector wages in a bid to slash Greece's deficit from 12.7 percent last year to below the EU's 3 percent ceiling by 2012.

The government's emergency tax reform and wages bills are expected to be unveiled this week and become law by the end of the month, but details have angered Greece's powerful unions.

"We will strike on Wednesday to defend our dignity, to put an end to our sacrifices on the altar of financial markets. These are pointless sacrifices," Spyros Papaspyros, president of the ADEDY public sector union, told a news conference.

ADEDY said it would decide on Thursday after the government presents the bills whether to call another strike in early March or join one on February 24 by the GSEE private sector union.

In a positive sign for the government, opinion polls at the weekend suggested most Greeks back its economic policy and consider the fiscal measures necessary and fair.

In Spain, however, where unemployment is nearing 20 percent, public opposition to Zapatero's fiscal plans is growing.

A poll in left-leaning newspaper Publico showed 49 percent of Spaniards would support a general strike against the government's plan to raise the legal retirement age to 67 from 65 and consider cutting pension payments as the population ages.

Spanish unions are due to hold protest marches at the end of the month, but Zapatero's labour minister vowed on Monday to press ahead with the austerity plans.

"The government has sent a proposal on pensions to parliament and we're not going to withdraw it, with demonstrations or without them," Celestino Corbacho told El Mundo newspaper.

(Writing by Noah Barkin; editing by Ralph Boulton)