Greek government narrowly passes new budget for 2016

Greek powers have agreed to a new round of spending cuts and tax increases for its 2016 budget.

The austere budget was accepted with only a narrow majority of 153 votes to 145.

Prime Minister Alexis Tsipras said: "This budget is a difficult task for a government that wants to leave its mark with social justice.

"Behind the numbers anybody can see the agonising effort to support the working classes."

A further €5.7bn will be cut from public spending, while taxes will rise to generate an additional €2bn.

The opposition described the budget as being "socially unfair".

The agreement will enable the government to access funds that were granted as part of its third bailout deal.

Despite the new budget, public debt is set to increase to 188% of gross domestic product (GDP) next year, up from 180% in 2015.

On Monday, officials from the International Monetary Fund and the European Central Bank will begin fresh talks with the Greek government about further reforms of its public administration, taxes and pensions.

The country's economy is expected to decline 0.7% next year, with unemployment remaining at 25%.