ATHENS, Greece — Striking fuel-tanker drivers said talks with the government have collapsed and vowed to press on with a protest that has dried up gas pumps and alarmed tour operators and businesses struggling to survive the country's financial crisis.
The five-day strike has sparked an unexpected midsummer crisis for Greece's center-left government which is facing fierce union opposition as it pushes through unpopular cost-cutting reforms.
Striking union leader Giorgos Tzortzatos said the government had failed to address the protesters' key demands at an hour-long meeting with transport ministry officials Wednesday.
"The government is responsible for this strike, not us," Tzortzatos said. The strike continues uninterrupted ... they should have been ready to listen to our demands."
The government has not ruled out ordering civil mobilization — using state employees as replacements — to get gas supplies moving.
"Will do what ever is necessary to make sure that that market is adequately supplied," Transport Minister Dimitris Reppas told state television late Tuesday.
Drivers are protesting an overhaul in licensing rules that are part of economic austerity measures agreed in order for Greece to get rescue loans from European countries and the International Monetary Fund.
IMF and European auditors are in Athens to inspect the progress of the belt-tightening reforms that have already seen pensions and civil servants' servants salaries slashed, along with money-saving welfare system changes.
The inspection is required before Greece receives the second installment in mid-September of loans from the rescue fund worth up to €110 billion ($142 billion) from the IMF and the 15 other EU countries using the euro.
Greece says its ambitious budget-reduction targets are on target, and is hoping that financial recovery elsewhere in Europe could help its vital tourism industry.
But Greek hoteliers and tour operators say bookings have been hit by violent demonstrations and strikes, including a recent port strikes, a work-to-rule protest by air traffic controllers, and the current fuel strike.
Greece saw a 5.3 percent drop in overseas tourist arrivals in the first quarter of 2010, according to figures from the Greek Statistical Authority.
"Greek tourism and those who work in the (industry) cannot keep working under this state of daily terror ... the economy and the country cannot take it," the Greek Association of Travel and Touristy Agencies said in a statement.
"Greek tourism is now too vulnerable to endure another blow."
Business associations have also been hard hit by the crisis, reporting a 50 percent drop in turnover for small businesses in greater Athens over the first six months of the year, compared with 2009.
Panagis Karellas, head of the Athens' traders association, said 13.8 percent of stores and 2.1 percent of services had closed in central Athens in the past 18 months.