A Greek austerity budget setting out tough deficit goals passed through Parliament early today as European leaders came under mounting pressure to tame the euro zone’s burgeoning debt crisis.

An outright majority of socialists, conservatives and far-right nationalists backing Greece’s interim government approved the budget which commits to unpopular cutbacks demanded by EU partners in return for fresh loans.

Of the 299 deputies present, 258 voted in favour and 41 against, Parliament Speaker, Mr Philippos Petsalnikos, said.

Caretaker Prime Minister, Mr Lucas Papademos, had earlier urged lawmakers to vote for the economic blueprint, which he said would begin to reverse disastrous policies that had saddled each Greek with a debt of over $40,000.

After years of accumulated deficits, Greece’s sovereign debt currently stands at over €350 billion.

“Our actions will determine the country’s economic future, not only for 2012 but for the entire decade,” said Mr Papademos, who took over last month with the task of ratifying a key euro zone debt deal and holding early elections.

The PM, a former European Central Bank deputy chief, also insisted that Greece’s position in the European Union and the euro was “non-negotiable’’.

“Our place in Europe is non-negotiable. The Greek people will defend it in every way possible,” Mr Papademos said.

Europe and our common currency remain, despite the crisis, one of the noblest achievements of recent history,” he said.

Clashes had broken out outside Parliament before the vote as thousands joined demonstrations to honour a schoolboy fatally shot by police three years ago.

That incident in December 2008 had sparked youth riots in several Greek cities as the country entered a recession from which it has yet to emerge.

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