Greece's teetering government has backed away from a proposed referendum on staying in the euro, while European leaders talked for the first time of a possible Greek exit to preserve the single currency.
The Greek government is facing possible collapse after ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy with a shock call for a referendum.
Clouds of tear gas choked central Athens as rival demonstrators fought with stones and firebombs outside parliament, leaving one man dead and dozens injured.
Greece's parliament has given initial approval to a new round of belt-tightening needed to avert default, despite violent protests during the biggest rally in two years against the bitterly resented measures.
Angry Greeks keep taking to the streets of Athens to protest against austerity, but many say they feel their public outrage will do little to change their fate or slow their debt-choked country's slide into bankruptcy.
Greece said it would deepen pension cuts, extend a painful property tax hike and put tens of thousands of workers on notice on Wednesday to secure a new injection of aid and save the country from bankruptcy.
Eurozone leaders have agreed to a sweeping deal that will grant Greece a massive new bailout - but likely make it the first euro country to default - and radically reshape the currency union's rescue fund, allowing it to act pre-emptively when crises build up.
Greece approved more austerity measures needed to avert default next month, in a vote that calmed markets but triggered a second day of riots that left dozens injured and the capital blanketed with tear gas.
Hours of rioting outside Greece's parliament have left 46 people injured, on the eve of a vote by lawmakers to adopt more painful austerity measures - a condition for bailout funds needed to prevent a potentially disastrous default.
Hours of talks between eurozone finance ministers on the imploding finances of Greece broke up early Monday morning without the ministers signing off on a vital installment of rescue loans needed to avoid bankruptcy next month.
Greece's prime minister, struggling to ensure Parliamentary approval for a crucial austerity bill, said he would reshuffle his Cabinet and seek a vote of confidence for his new government this week, after coalition talks with opposition parties failed.
Greece's financial future remains in the balance, with international rating agency Moody's further downgrading its credit rating just five notches short of a default rating.
Police say break-ins at two fur farms have set more than 50,000 minks on the loose in northern Greece.
Greek officials say a horde of frogs forced the closure of a key northern highway for two hours.
Riots over harsh new austerity measures left three bank workers dead and engulfed the streets of Athens, as angry protesters tried to storm parliament, hurled Molotov cocktails at police and torched buildings. Police responded with barrages of tear gas.
A further financial crisis in Greece yesterday caused chaos on world financial markets after credit rating agency Standard & Poor's downgraded Greek bonds to junk status.
