By Lefteris Papadimas and Renee Maltezou
ATHENS (Reuters) - Greeks protesting government austerity measures threw petrol bombs at a bank branch in Athens on Wednesday, killing three people including a pregnant woman, in the worst violence to hit the country since riots in 2008.
Tens of thousands of Greeks took to the streets of the capital and masked youths clashed with police in riot gear, who responded with steady rounds of tear gas and flash bombs which clouded the blocks surrounding parliament.
The violence is a blow to Prime Minister George Papandreou's plans to push through tough budget cuts demanded by the European Union and International Monetary Fund in exchange for a 110 billion euro aid package unveiled on Sunday.
A female and two male employees of a Marfin bank branch died of asphyxiation after protesters broke the windows of a commercial building on central Stadiou Avenue and tossed in Molotov cocktails.
Marfin bank officials told Reuters the female victim had been pregnant. Firemen had to restrain a distraught elderly woman outside the bank, who wept and cried "my child, my child."
Papandreou, speaking in parliament, expressed shock at the deaths and vowed to bring those responsible to justice.
"We are deeply shocked by the unjust death of these three people, our fellow citizens, who were victims of a murderous act," he said.
He also defended his austerity plans, which foresee 30 billion euros in savings mainly from cuts in wages and pensions, and said the government would not abandon its drive to save the country from ruin.
"We took these decisions to save the country," he said. "The alternative would be bankruptcy."
BIGGEST PROTEST
Parliament later began a debate on the austerity bill. Opposition conservatives are refusing to support it, but the government, which enjoys a comfortable majority, hopes to pass it by the end of the week.
"It is absolutely necessary to agree the law in parliament in the coming days," Finance Minister George Papaconstantinou said.
Police put the march at roughly 30,000 people. But witnesses said there were more than 50,000 -- easily the biggest protest since Papandreou took office last October and launched efforts to reform an economy that is uncompetitive and plagued by corruption.
Hundreds of black-hooded anarchists roamed the streets, smashing store windows and hacking chunks of marble off buildings to throw at police.
Although they were behind the worst of the violence, other protesters joined them in pelting police with bottles. Large crowds shouting "Thieves!" repeatedly tried to storm parliament, reaching the steps leading to the entrance before being pushed back by police.
Presidential guards, who usually stand immobile in front of the assembly building, left their posts as the clashes worsened.
The marchers had dispersed by late afternoon, leaving streets littered with burnt out garbage containers. Dozens of shop windows were smashed, including a bookstore and McDonald's restaurant near the burnt bank. Two other buildings besides the bank were set on fire.
Police said eight people had been injured in the violence and eight arrested for carrying weapons and resisting authorities.
BLOW TO GOVERNMENT
The EU and IMF aid was intended to calm markets and give the government time to overhaul the economy and bring down a yawning deficit that totalled 13.6 percent of national economic output last year.
But the euro currency and Greek assets have been pummelled on concern that social unrest could thwart government plans to push through the measures, and on fears that Greece's woes could spread to other euro zone countries such as Portugal and Spain.
In past months anti-austerity protests had been fairly peaceful, but Wednesday's violence was similar to that seen in the 2008 riots, which broke out when police killed a teenager and dragged on for weeks.
The march consisted mainly of public and private sector workers staging a joint strike that grounded flights, shut shops and brought public transport to a standstill.
Greece's main public sector union ADEDY denounced the violence that had led to the deaths and said it would hold further walkouts next week.
"These actions have nothing to do with our movement and are undermining our struggle," said Ilias Vrettakos, deputy head of the union.
"The big participation in the strike today and the crowds that flooded the streets of Athens...send a message to the government: We will not let the EU and the IMF measures pass."
Apostolos Kolokythopoulos, a 70-year old pensioner who lives on less than 1,000 euros (851 pounds) a month, said the walkouts were needed to force the government to change course.
"I agree with the strikes. If people don't react, don't protest, how will things change?" he said.
Centre-left daily Eleftherotypia warned young Greeks would rise up if nothing was done to give them hope of a future.
"If nothing is done, the explosion of the angry and the disappointed will sweep everything away," the paper said. "Have we forgotten December 2008 and become complacent?"
(Additional reporting by Ingrid Melander, Dina Kyriakidou, George Georgiopoulos, Harry Papachristou; Writing by Noah Barkin; editing by Philippa Fletcher)
