Greece agrees more austerity measures to tackle soaring debt
The latest cuts are needed for the country to continue receiving loans from the 93.5bn bailout fund created for Greece by European countries and the International Monetary Fund.
But the government is facing growing hostility from Socialist-dominated unions and even its own party.
Advertisement
Hide AdAdvertisement
Hide AdPrime minister George Papandreou insisted the austerity measures – including pay cuts for state workers, sale tax increases, and axeing employment rights – were working.
"We will not go bankrupt. In 2012 we will return to a path of growth... we will not give speculators or ratings agencies the pleasure," he told parliament shortly before the vote.