EU welcomes Greek austerity measures

The Greek parliament's decision to approve tough new austerity measures have been welcomed by the European Commission.

Economics commissioner Olli Rehn has urged Greek officials to "take ownership" has called for full implementation of the reforms as demanded by the EU in return for a huge bailout.

Financial markets perked up slightly following the passage of the austerity bill. However, the measures sparked massive protests throughout Greece and crowds torched buildings in Athens while police used tear gas to disperse the protesters.

Greece is trying to secure a bailout package of €130 billion from the EU and IMF to allow repayment of its debts. However, lenders insist that Athens should implement deep cuts and austerity measures before the release of the amount.

This comes as the second major cuts programme that the Greek government had promised to implement.

According to Rehn, the EU continued to stand by Greece and the cuts were warranted to secure future economic growth.