Greece has reached an agreement with the International Monetary Fund (IMF) and the European Union (EU) on a $159 billion rescue package for the debt-laden country.
The agreement includes harsh spending cuts through 2012.
Prime Minister George Papandreou made the announcement Sunday after workers' unions staged violent anti-government protests at May Day rallies, Prensa Latina reported.
Papandreou said people would be urged to make "great sacrifices" to avoid catastrophe.
European finance ministers were expected to hold an emergency meeting Sunday to approve the EU's contribution.
Meanwhile, unions have planned a general strike Wednesday against the new cuts.