Thu, May 17, 2012, 5:37 AM AEST - Australia Markets open in 4 hrs 23 mins

Greek government approves debt deal

Greece's coalition government has approved a eurozone debt deal and accompanying austerity measures that have been tabled in parliament for a vote on Sunday, the semi-state ANA agency says.

The cabinet unanimously approved the deal early Saturday, which saves Greece from a disorderly default in March, ANA said.

The bill will be put to a vote in the 300-member parliament on Sunday, state television NET reported.

Five ministers have resigned from the government over the issue, with one junior party in the coalition saying the demands were "humiliating".

Unions began a 48-hour strike on Friday with protesters clashing with police.

Prime Minister Lucas Papademos has warned the country faces "uncontrolled economic chaos" if it fails to agree spending cuts and defaults on its debts.

"We cannot allow Greece to go bankrupt," he told his cabinet, saying it was an "hour of historic responsibility".

"A disorderly default would plunge our country in a disastrous adventure," he said.

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