EU says way clear to approve Greek aid

The Greek parliament's vote in favour of austerity plans today clears the way for approval of the next tranche of its bailout and for progress on a new round of financial help, the EU's top two officials said.

"This was the second, decisive step Greece needed to take in order to return to a sustainable path," European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy said in a joint statement.

"In very difficult circumstances, it was another act of national responsibility. The conditions are now in place for a decision on the disbursement of the next tranche of financial assistance for Greece and for rapid progress on a second assistance package," they added.

The Greek parliament approved detailed austerity and privatization bills in a crucial vote today, to secure emergency funds and avert imminent bankruptcy.

"We reiterate Europe's unwavering support and solidarity for the Greek people, in whose future we are confident. In view of the hard work that still lies ahead, we repeat our call for all political parties to work together to take to their country forward," the EU leaders said.