Greek MPs have approved a deeply unpopular austerity bill, demanded by the eurozone and IMF in return for a second bailout and to avoid national bankruptcy.

The altogether vote was carried by 199 in favour to 74 against. 43 deputies from the two parties in the government of Prime Minister Lucas Papademos, the socialists and conservatives, rebelled by voting against it. They were immediately expelled by their parties.

The Greek people have reacted with anger, with thousands protesting in Athens and cities across with country.

Protesters outside parliament threw stones and petrol bombs, and police responded with tear gas. Scores of police and protesters were injured.

Prime Minister Lucas Papademos urged calm, insisting that the austerity package would "set the foundations for the reform and recovery of the economy".

Image: Getty