He will seek to have the government ratified in a vote of confidence in parliament on June 16, he said.

Mr Papandreou has faced the threat of a revolt in his socialist Pasok party over the controversial package.

Greek police clashed with anti-austerity protesters near parliament, and unions held a general strike.

"I will continue on the same course," said Mr Papandreou in a TV address on June 15 evening. "This is the road of duty, together with Pasok's parliamentary group, its members, and the Greek people."

Mr Papandreou is seeking to push through a new austerity programme of US$40.5bn in cuts to take effect from 2012 to 2015.

In order to avoid default, the government is trying to pass the measures by the end of the month and secure the release of EUR12bn in aid from the EU and IMF.