Greece's cabinet on Friday approved a new austerity agreement demanded by the indebted nation's international creditors, despite resistance from within the coalition government by the far-right party LAOS.

The leader of LAOS, George Karatzaferis, said on Friday that his party would not vote for a harsh austerity package demanded by the EU and the IMF in exchange for the next installment of the bailout program.

"Greeks cannot be hostages and serfs," Karatzaferis told a news conference. "We were robbed of our dignity, we were humiliated. I can't take this. I won't allow it, no matter how hungry I am."

At an emergency cabinet meeting, Greek Prime Minister Lucas Papademos said he would "do everything necessary" to ensure that an austerity package will be approved in parliament.

The Greek parliament is due to vote for an improved austerity plan on Sunday. LAOS has 16 deputies in the 300-seat chamber, and although several lawmakers from other parties have also declared their opposition to the new cuts, the other two coalition parties have enough support to ensure the package will pass.

On Friday, five more members of the cabinet threw in the towel, four of them members of LAOS, the other a Socialist. Their resignations follow that of Socialist Deputy Labor Minister Yiannis Koutsoukos on Thursday.

The coalition government mainly consists of deputies from the socialist PASOK and conservative New Democracy parties.

Lambasting Germany

Karatzaferis slammed Germany for what he perceives as the country's ill-advised leadership role in the eurozone debt crisis.

"The EU has been abolished," he said. "Germany decides on behalf of Europe because it has a swollen wallet," he said.

"Decisions are no longer taken in Brussels, but in a tower outside Berlin where Ms Merkel confers with satellite countries the Netherlands, Austria, Finland, and lately, regrettably, Luxembourg," he said, adding that Greece should stay in the eurozone, but not under "Germany's boot."

Renewed strikes

Meanwhile, Greek workers went on a 48-hour strike Friday, to protest the harsh measures, chanting "do not bow your heads! Resist!" and "No to layoffs! No to salary cuts! No to pension cuts! Some protesters clashed with police in central Athens.

The strike comes after eurozone finance ministers refused to approve a second bailout for Greece late on Thursday, despite an agreement reached among the political parties in Athens to implement the austerity measures demanded by the European Union, International Monetary Fund (IMF) and European Central Bank (ECB).

The country risks default on March 20 when it must repay nearly 14.5 billion euros ($19 billion) in debt

The eurozone ministers are set to reconvene on Wednesday to decide whether Greece has met the conditions.

ng/msh/slk (Reuters, AFP, AP)