Thessaloniki (Greece), Sep 6 (DPA) Thousands of people marched in the northern port city of Thessaloniki Saturday to protest the ruling conservative government's austere economic reforms ahead of elections next month.

More than 10,000 people marched through downtown Thessaloniki towards the International Trade Fair where Greek Prime Minister Costas Karamanlis was giving a speech on the state of the economy.

Karamanlis, whose conservative administration has been plagued with scandals, called a snap general election Oct 4, which was needed to deal with the economic downturn.

In calling the election, Karamanlis said he sought a fresh political mandate to deal with the difficult years ahead for the fragile Greek economy.

The conservative leader promised that if he won his third mandate in almost six years he would freeze public sector pay and hirings and continue privatising state companies in an effort to cut public debt.

'We face two very difficult years ahead, which will sharply hit tourism, shipping, trade and construction,' Karamanlis said.

Greece, one of the euro zone's weakest economies, is sliding into recession this year.

Karamanlis sold off state companies such as Olympic Airlines and increased taxes to decrease the country's widening budget deficit.

Shouting anti-government slogans, thousands of union workers marched through Thessaloniki in three separate marches.