Greece’s cabinet Saturday approved tough austerity measures demanded by EU and IMF creditors after the prime minister warned that a failed debt deal and default would spark “uncontrolled chaos”.

The coalition government, hit by defections on Friday, approved the belt-tightening measures on a day that saw renewed street clashes between protesters and police and the start of a two-day general strike.

Prime Minister Lucas Papademos had issued a stern warning after six members of his coalition government had resigned in protest at the new cuts.