The Parliament approved all individual provisions of the social security reform bill yesterday, after its endorsement in principle, on July 7. The bill - heavily criticized for sharply paring down the country’s welfare state by increasing the retirement age and reducing benefits - was backed by 159 deputies in the 300-seat house.

The legislation is considered by analysts as a major test of the government's ability to overhaul the Greek economy and constitutes a prerequisite for the second tranche of the EU-IMF loan.

Addressing the parliamentary debate just prior to the vote, Prime Minister George Papandreou assured that "when our economy stands on its feet, we will be able to improve pensions and provide better services to working people, the insured, and pensioners."