Greece adopts controversial reforms ahead of Eurogroup talks

Greek lawmakers adopted a controversial package of pension cuts and tax hikes as euro zone finance ministers geared up for an emergency meeting to hammer out fresh reforms for Athens to stave off another euro zone crisis.

The ministers are expected to complete a long-stalled first review of Greece's massive EU-IMF bailout.  There will be a discussion on new debt relief measures at a crunch meeting on Monday in Brussels. The meeting follows mass public opposition to the newly adopted measures in the cash-strapped country.

The talks have already suffered months of delay. Greece wants to wrap up the talks so that it can unlock the next tranche of its 86-billion-euro (US $ 95 bn) bailout ahead of a huge European Central Bank payment due in July.

In its official agenda the ministers from the 19 countries that use the euro said they would discuss the "progress achieved" by Greek and creditor officials in recent days on the reforms, "with a view to conclude them as soon as possible".

It added that it would "also discuss possible debt relief measures aiming at ensuring that Greece's gross financing needs remain at a sustainable level, with a view to reach a political agreement."

The meeting follows days of protests in Greece, where tens of thousands took to the streets to slam the unpopular reforms adopted yesterday.

The measures were passed thanks to the Syriza-led government's slim majority in the 300-seat parliament, with the 153 MPs of the far-left Syriza and the Independent Greeks coalition voting in favour of the measures.

As expected all the opposition parties voted against the bill, which will reduce Greece's highest pension payouts, merge several pension funds, increase contributions and raise taxes for those on medium and high incomes.

In the run-up to the parliamentary debate, angry unions staged a general strike that paralysed public transport for a third straight day on Aundy, while some 26,000 people took to the streets of Athens and Greece's second city Thessaloniki in protest at the pensions and tax overhaul.

Brief clashes erupted outside the parliament in Athens ahead of the vote, with youths throwing Molotov cocktails and flares at riot police who responded with volleys of tear gas.

"People are tired and disappointed by the leftist government in power. The rallies have not had the scale we had expected," said Maria, a private sector employee in her fifties who claims to be owed 30,000 euros (US $ 34,000) in back pay from her employer.