THE Greek government told rebellious lawmakers yesterday to back a deeply unpopular European Union/International Monetary Fund rescue in parliament or send the nation down "an unknown, dangerous path" to default and international economic isolation.

Conservative leader Antonis Samaras, who has attacked austerity policies for driving Greece ever deeper into recession, told members of his party to back the €130 billion deal or be dropped as candidates at the next general election.

With voters deeply hostile to the bailout's tough conditions, former prime minister George Papandreou admitted that backing austerity had cost him the premiership but the alternative was a collapse in living standards and further "unforeseeable consequences".

The coalition of Prime Minister Lucas Papademos has a huge majority, which should ensure parliament today approves a package including a further €3.3bn in budget cuts this year, needed to secure Greece's second bailout since 2010.

But six members of his cabinet have already resigned over the heavy cuts to pay, pensions and jobs which the EU and IMF are demanding in return for the funds, which Greece needs by next month to avoid bankruptcy.

Deputy finance minister Filippos Sachinidis said: "The consequences of disorderly default would be incalculable for the country – not just for the economy - it will lead us onto an unknown, dangerous path."

In a newspaper interview, he described the catastrophe he believes Greece would suffer if it failed to meet its next debt repayments of €14.5bn, due on March 20.

"Let's just ask ourselves what it would mean for the country to lose its banking system, to be cut off from imports of raw materials, pharmaceuticals, fuel, basic foodstuffs and technology," he said.

The cabinet approved the draft bailout bill and a plan to ease the state's huge debt burden which has deepened the nation's political and social crisis and brought thousands out on the streets in protest.

As a 48-hour protest strike went into its second day, about 50 Communist party activists draped two banners on the ramparts of the Acropolis yesterday, saying: "Down with the dictatorship of the monopolies [and the] European Union."

About 7000 demonstrators gathered in central Athens, police said, but there was no repeat of trouble seen on Friday, when police fired teargas at protesters throwing petrol bombs and stones.

Members of Samaras's conservative New Democracy party, which has a big lead in opinion polls, are likely to back the deal. But Samaras still warned his party against stepping out of line.

Analysts expect parliament to pass the package, which also includes a bond swap to ease Greece's debt burden by cutting the value of private investors' bond holdings 70%. Bailout documents released on Friday left blank the amount of the rescue, but €130bn may not be enough.

The EU and IMF have been exasperated by a series of broken promises and weeks of disagreement. They will not release the aid without clear commitments by the main party leaders that the reforms will be implemented, regardless of who wins the next elections.

■GREECE