A wave of fresh protests hit Greece on Friday after the Greek people reacted angrily to the rejection of the country's austerity plans by eurozone finance ministers.
Greek political leaders agreed a last-minute deal including three-billion euros worth of cuts, but Brussels said it is not enough.
In response to the rejection, the Greek people staged massive demonstrations in Athens and country's next biggest city Thessaloniki.
Some 20,000 were reported to have gathered in Syntagma Square, outside the Parliament in Athens.
Clashes broke out as dozens of hooded youths threw fire bombs and stones at police, who responded with tear gas.
The country now has less than a week to meet three conditions in return for 130 billion euros in aid to stave off bankruptcy.
Deputy Prime Minister Theodoros Pangalos told the Greek Parliament on Friday.'We are experiencing tragic moments.
'These days are the last acts of a drama that we all hope will lead to a happy conclusion with a voluntary reduction in our public debt and implementation of a framework by 2015 that will allow the economy to stabilise.'
The other eurozone countries have demanded Greece finds another 325 million euros in savings, passes its cuts package in parliament and secures written guarantees the plans will be implemented even after a new government is elected in April.
The Greek people were already furious over the existing austerity measures, which make sharp cuts to the minimum wage and thousands of public-sector jobs.
Its deputy labour minister has resigned in protest after Greece agreed to the deal, accusing debt inspectors of using 'shameless and blackmailing tactics'.
The unions are livid and have called a 48-hour strike for today and tomorrow in opposition to the new cuts.
Even debt inspectors have conceded that the new measures would keep the country in a recession for a fifth straight year.
But following the meeting with other eurozone ministers, Greece's finance minister warned that the alternative will likely be worse.
'Unfortunately the choice we face is one of sacrifice or even greater sacrifice - on a scale that cannot be compared,' Evangelos Venizelos said.
Other European officials warned that more severe steps still might be necessary.
'Greece still has its homework cut out,' Jan Kees de Jager, the Dutch finance minister, said after the meeting. 'A lot of measures need to be clarified and taken.'
Olli Rehn, the EU's economic affairs commissioner, has said plans proposed by France and Germany to get Greece to set up a separate account dedicated to repaying its debt are also seriously being considered.
This would be an unprecedented intrusion into the fiscal affairs of a sovereign state in Europe and underlines the frustration at Greece's slow reforms over the past two years.
Greece's wriggle room is rapidly diminishing. It has until March 20 to redeem 14.5bn euros in bonds - money it does not have.
The country's total debt is 350bn euros - equivalent to 160% of its annual economic output and unsustainable even for a healthier economy.
Greek Prime Minister Lucas Papademos has made clear that all major party leaders in the coalition government had backed the latest cuts but its eurozone partners have indicated they will need written assurance before the meeting next Wednesday.
Once all the demands have been fulfilled, Greece will get the green light to start implementing a separate bond swap deal with banks and investors which is designed to reduce its debts.
The country is expected to rush the new austerity measures through parliament on Sunday but the government is already facing growing dissent from the majority Socialist party.
