Papandreou’s options are narrowing after attempts to gain opposition support for the austerity plan failed, party allies turned against him and public anger grew. The premier needs to clinch a vote on a 78 billion-euro five-year package of budget cuts and state-asset sales by the end of the month to ensure the country gets a new aid package needed to prevent a default. ...

More than 20,000 people rallied yesterday in Athens against wage reductions and tax increases as lawmakers debated the budget cuts and asset sales that are conditions of the new aid. Ports, banks, hospitals and state-run companies were paralyzed by strikes, while a Papandreou ally said he won't support the austerity measures and another bolted his Socialist Party. Papandreou held a six-seat edge in the 300-member legislature before the defections.

Greek Prime Minister George Papandreou starts a campaign on Monday to secure a new international bailout by imposing years of austerity on a nation already seething over corruption and economic mismanagement.

Unease is growing within Papandreou's ranks about the consequences of waves of budget cuts demanded under successive deals with the European Union and IMF -- and this could turn into alarm after at least 80,000 Greeks crammed a central Athens square to vent their anger over the nation's dire state.

As the government struggles to prevent Greece from defaulting on its debt, the Socialist cabinet will discuss informally on Monday the medium-term economic plan which will impose 6.4 billion euros ($9.37 billion) of extra austerity this year alone.