Fireworks light up the sky over the Acropolis in Athens, as the Greek capital ushers in 2012.
But the festivities have a somber edge, as many Greeks fear the new year will be worse than the last.
In a pre-recorded New Year's Eve address Prime Minister Lucas Papademos said that Greece faces another tough year, but must stick to its program of austerity and reform.
With soaring unemployment, and further cuts expected to wages and pensions, the mood in the capital is bleak.
(SOUNDBITE)(Greek) PENSIONER YANNIS, 60, SAYING:
"What I have to say is that the situation for Greek people is very bad, all the people are troubled, indignant, in a state of depression and God may help us to improve things."
(SOUNDBITE)(Greek) BARTENDER FOTIS, 28, SAYING:
"For our country I don't t think 2012 will be good. We will go hungry, there will be no jobs, already there are no jobs."
The Greek press reflected the negative mood, running headlines such as "The Way You Are Going You Will Be Bankrupt In 2012 Mr. Papademos" - referring to a letter sent by the IMF to the Greek Prime Minister.
January is a critical month for Greece, as negotiations continue between the government and the banks over a deal to reduce the stricken country's debt.
Nick Rowlands, Reuters.
