Is it safe in Athens?

Yes. Athens is safe. The demonstrations are taking place in Syntagma Square so as long as you stay away from that part of town you will not even notice anything is going on. And for the most part the demonstrators are peaceful. It's only a small handful that try to start trouble. The airports and ferries are currently running. Any interruption is announced well in advance. You will find announcements about that here listed under "Latest News": http://tinyurl.com/6hk7cy2 I don't know when you'll read my answer but here is what it says today, Sunday, June 26: There will be no buses, trolley buses, trams or trains on Tuesday and Wednesday, June 28 and 29, as a result of the 48-hour strike called by unions to coincide with the Parliamentary debate and vote on the government's latest austerity package. Workers on the Athens metro and the Kifissia-Piraeus electric railway (ISAP) had not decided by last night what action, if any, they would take. Air traffic controllers decided on Saturday that they would also join the strike by staging two four-hour stoppages on both days. This means they will walk off the job from 8 a.m. to noon tomorrow and on Wednesday and from 6 p.m. to 10 p.m. This is expected to disrupt dozens of flights, so passengers are advised to check with their airlines.

As long as the Airport Metro is running and your hotel is not close to Syntagma Square, you can take the Airport Blue Line Metro into Athens to the Syntagma Station (remaining underground away from the demonstrations) then transfer to whichever Metro Line is closest to your hotel. I suggest you find a hotel nearest to the Monastiraki Metro Station and you won't even have to change at Syntagma. Just ride the Blue Line one more stop after Syntagma to Monastiraki and your hotel will be within easy walking distance and far enough from Syntagma for you to be fine. Some hotels to consider: Attalos, Metropolis, Plaka, Pella Inn, Amazon, Cecil, Tempi, Magna Grecia, Acropolis View.

The hotel itself is far enough away from Syntagma Square to be in a "no-trouble" zone but the Syntagma Metro Station is still the closest one. To get to the hotel and avoid Syntagma you'll have to walk further. Monastiraki would be the next closest station. If you travel with heavy luggage you might want to find a hotel closer to Monastiraki.

Thanks so much for the information - that makes me feel alot better about our upcoming trip!! We are staying at Hotel Hermes in the Plaka Area. Is that far enough away from the trouble?

I wouldn't fret about the Metro... there will be a line-up of Taxis at the airport eager to take you to Hotel Hermes, baggage & all, for a flat-fee of €35. If there are 2 of you, certainly worth it, no hassle. Same going back.

I was in Athens a couple of weeks ago, right before the riots broke out in Syntagma Square. I was staying near the Acropolis. Certainly, you have nothing to worry about. Even walking through Syntagma Square amongst all the protestors, I was not afraid. As the previous posts said, as long as you stay away from that area you'll be fine. Other than the two guards standing in front of the Parliament building, there's really not much to see there anyway.