Austerity-fatigued Greeks have been slapped with new tax hikes and pension cuts, while the government also pledged to suspend 30,000 civil servants in a hectic scramble to keep its bailout payments flowing and soothe global market fears that Greece will go bust.
Without continued payments from a 110 billion euro programme of rescue loans from eurozone countries and the International Monetary Fund, the heavily indebted eurozone member will run out of cash by mid-October.
But Athens has lagged behind savings targets set in its bailout agreement, angering international debt inspectors who threatened to halt the loans - as the country heads for a fourth year of recession amid record unemployment.
Under the measures announced yesterday, monthly pensions will be cut by 20% above a 1,200 euro threshold, while retirees aged under 55 will lose 40% of their pensions above the sum of 1,000 euro.
The tax-free annual income limit will be cut to 5,000 euro from 8,000 euro as of this year, while the number of civil servants to be suspended on partial pay will rise to 30,000 by the end of this year, from 20,000.
After a year of forced idleness on 60% of their base salary, these workers will either be shifted to other state jobs or fired - despite having been hired with a lifetime job guarantee.
The public sector employs nearly 800,000 in the country of 11 million, and Greece's creditors have repeatedly urged cuts.
The government also pledged to speed up privatisations and open up closely regulated professions to competition.
"This sends a message to our partners and to markets that Greece both wishes and is able to fulfil its commitments and remain at the core of the eurozone and the EU," government spokesman Elias Mossialos said following a 6 1/2 hour emergency ministerial meeting.
EU and IMF debt inspectors are due back in Athens early next week to finalise their latest quarterly assessment of Greece's austerity programme, on which approval of the next eight billion euro loan payment hinges.
The review was suspended earlier this month amid talk of delays and missed targets, and it took two nights of conference calls on Monday and Tuesday for Finance Minister Evangelos Venizelos to talk debt inspectors into returning.
"We have to take supplementary measures ... because of the recession, because of the difficult task, and the weakness of the central administration have not produced the required results," Mr Venizelos said.
The government has already announced a new property tax this month in a hurried attempt to plug a budget gap.
The new tax will be paid through electricity bills to make it easier for the state to collect, but the plan could run into problems as the power company union has threatened to block collection of the money.
The announcement of more tax increases and spending cuts - after 20 months of harsh austerity - met with mounting anger late Wednesday.
"I'm 73 years old and I will start a war," retiree Efthymios Gardikiotis said. "The same way (the government) wants a war."