Greece: Eurozone ministers set to approve latest loan
Greece: Eurozone ministers delay decision on vital loan
(about 4 hours later)
Eurozone finance ministers are meeting in Luxembourg, where they are expected to approve a 12bn-euro (£10-bn) loan to debt-stricken Greece.
Eurozone finance ministers have postponed a final decision on a 12bn-euro (£10-bn) loan to Greece until it introduces further austerity measures.
The loan is the latest tranche of a 110bn-euro EU and IMF aid package.
They said they expected to pay the latest tranche of a 110bn-euro EU and IMF aid package by mid-July.
The finance chiefs are also expected to discuss a second bail-out for Greece. PM George Papandreou confirmed that talks were taking place about a new deal "roughly equal" to the first.
But it would depend on Greece passing 28bn euros of new spending cuts and economic reforms, they added.
Mr Papandreou urged a "national accord" in parliament to deal with the crisis.
Earlier, thousands of people gathered outside the parliament building in Athens to oppose any further cuts.
"I have asked for a renewal of confidence in the government, because the country finds itself at a crucial point," he told parliament, at the start of three days of debate.
Waving banners and Greek flags, they shouted: "Thieves! Traitors!"
Mr Papandreou reshuffled his cabinet on Friday, with former Defence Minister Evangelos Venizelos replacing George Papaconstantinou as Finance Minister.
Prime Minister George Papandreou meanwhile told MPs that they had to support the austerity measures demanded by the European Union and International Monetary Fund to avoid a "catastrophic" default.
Even if there is another bail-out of around 110bn euros, Greeks have lost faith in the plan. All they see is debt piling on debt.
They will vote on Tuesday on a confidence motion in Mr Papandreou's cabinet, which he reshuffled last week amid public unrest.
This is where the danger lies. A creeping despair. Injured national pride. Ten years of austerity.
Even so, the bet must be that the Greeks reluctantly, sullenly, will go along with new austerity but I have sensed a despair that last year just wasn't there, and no-one knows where that will lead.
Arriving at the Luxembourg meeting, Mr Venizelos said Greece remained fully committed to the financial aid programme from the EU and the International Monetary Fund (IMF), and to achieving its targets.
"It is a great opportunity for me to repeat the strong commitment of the Greek government and the strong will of the Greek people for the implementation of the programme," he told reporters.
"We can achieve our target, thanks to the efforts of our people, and thanks to the co-operation and the assistance of our partners."
In Athens, thousands of protesters have again gathered outside parliament in Syntagma Square. They want changes to the austerity programme due to be voted on next week.
Waving banners and Greek flags, they shouted "Thieves! Traitors!".
"Most of the people here want all the measures to be rescinded and a part of the debt to be written off, or all of it, at least the part that comes from banks," businessman Grigoris Demestika, 39, said.
Referendum
Inside the building, members of parliament have begun a three-day debate on the package, which will culminate in a vote of confidence on Tuesday.
New short-term funding is dependent on the government winning that vote, says the BBC's Gavin Hewitt, in Athens.
In May last year, the EU and IMF agreed to lend Greece 110bn euros, but the loan is conditional on the government implementing a series of painful domestic reforms which have sparked nationwide strikes, rallies and violent riots on the streets of Athens.
Greece needs the latest tranche to avoid defaulting on its looming debts.
Mr Papandreou told parliament the country would soon run out of money if politicians did not take action.
The prime minister said his priority was "a national accord to tackle the Greek debt and deficit which are a national problem", warning that the image of disunity was damaging the country's reputation.
But he also said a reform of the political system was needed, and proposed a referendum later this year on possible changes to the constitution.
However, opposition politicians who oppose the government's austerity plans rejected Mr Papandreou's appeal and asked why the public should be asked to make sacrifices in vain.
There were calls for Mr Papandreou to resign and call elections.
