The Greek cabinet has approved a pack of new austerity measures requested by the Eurozone and the International Monetary Fund to secure a 130-billion euro ($170bln) bailout to avoid default, the Greek national television reported on Saturday.
The agreement should now be passed by Greece’s parliament and receive approval of European finance ministers.
The country’s Prime Minister Lucas Papademos has warned against failing to agree spending cuts, saying Greece was facing “uncontrolled economic chaos.”
“We cannot allow Greece to go bankrupt,” he told the cabinet as quoted by the BBC. “A disorderly default would plunge our country in a disastrous adventure.”
Papademos also said parties and ministers that do not back the agreement will not be present in the coalition government.
