The Greek Parliament approved later yesterday a controversial government list of even tougher austerity measures demanded by the country’s creditors which have sparked violent street protests.

Prime Minister George Papandreou welcomed the vote in a letter read to parliament after a day of clashes in Athens and as European leaders tried to agree a solution to the deepening eurozone debt crisis.

Mr Papandreou earlier warned the European Union of the risk of not taking decisions that lead to a resolution of the crisis at this weekend’s EU summit.

“There are serious doubts about whether we will reach decisions on Sunday ... I am sounding the alarm against more delays,” Mr Papandreou said at a cabinet meeting, according to a statement.

He called on EU leaders to take “decisive” action to resolve the debt crisis which has snared Greece and the entire euro currency area, stressing the need for a resolution to stop any contagion throughout the eurozone.

The latest austerity measures were sought by the EU and International Monetary Fund in exchange for approval of 8.0 billion euros in fresh funding provided under Greece’s May 2010 debt bailout.

Final clearance of the money remained uncertain yesterday as the IMF said it was still studying the latest review of Greece’s finances to ensure it was meeting targets set down in its debt rescue.

Earlier yesterday, Paris announced that French President Nicolas Sarkozy and German Chancellor Angela Merkel would meet tomorrow to prepare a “global and ambitious answer” to the eurozone crisis ahead of a second EU summit on Wednesday.

In a statement from Mr Sarkozy’s office, Paris and Berlin also called for “immediate negotiations” with the private sector “to find an agreement allowing to strengthen the sustainability” of Greek debt – a comment made amid speculation its massive borrowings will have to be restructured.

The Greek government’s latest austerity measures sparked violent protests in Athens yesterday in a fresh show of public anger.

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