THE GREEK PARLIAMENT will hold a crucial vote today on whether to implement another round of harsh austerity measures in the crisis-hit country.

Embattled prime minister George Papandreou has urged MPs to back the €28billion plan, arguing that it is the only way out of Greece’s economic difficulties. If the vote is not passed, the country cannot draw down the next chunk of its €110billion IMF/EU bailout fund. European leaders are also holding out the offer of a second bailout loan, estimated at around €120billion, if the austerity package is voted in.

Speaking on RTE radio this morning, Global Radio News reporter Louis Economopoulos said the cuts could see workers lose the equivalent of two months’ salary every year. Services across the country are shut down for the second day today as unions continue a general strike.

Yesterday saw violent protests in the capital Athens, with anti-cuts protesters hurling rocks and firebombs at police who fought back with tear gas and stun grenades. Some 46 people were injured including 37 police officers, the BBC reports. According to the Independent, Greece’s deputy prime minister Theodoros Pangalos has warned that tanks may be deployed on the streets if the chaos continues.

This morning there appeared to be signs that the bill would pass, as one deputy who had threatened to vote against it backtracked. Papandreou’s Socialist Party holds a narrow majority in parliament. Reuters reports that US Treasury yields fell as investors gained confidence Greece would pass its austerity measures. Oil prices also steadied, showing optimism that the country’s debt crisis would not spark a Europe-wide meltdown, according to the Economic Times.

Gallery: Police and protesters clash in Athens >

Read more: Tear gas and violence in Athens as Greeks fight austerity >