Greek lawmakers cleared on Thursday evening a new austerity bill, paving the way for foreign lenders to release a loan instalment Greece urgently needs to escape bankruptcy in November, amid violent protests in central Athens that resulted in one death.

The assembly approved in a key second and final vote by 153 to 145 with 298 deputies present the latest set of spending cuts, wage cutbacks, tax increases, dismissals of thousands civil servants and changes in collective bargaining labour rights.

But the negative vote of one ruling socialist PASOK party "dissident" deputy was a blow to the government's narrow four-seat majority in the 300-member strong parliament.

Former Labor Minister Louka Katseli rejected a provision over a more flexible labor market to boost the competitiveness of the ailing economy, claiming that the step leads to deeper recession.

She was immediately dismissed from the party's parliamentary group, which is now reduced to 153 lawmakers.

Greek Prime Minister George Papandreou won the general elections in October 2009 and a 160-seat majority in the assembly. Ever since it has been reduced due to a wave of dismissals and resignations of deputies over a harsh austerity drive to counter an acute debt crisis.

Ahead of Thursday's vote at least three PASOK deputies had expressed their intention to vote against the bill, but after rounds of talks with Papandreou, they eventually supported the measures.

Thursday's vote was marred by violent clashes outside the parliament building between police and rioters during a mass rally that ended in the afternoon with the death of a protestor and up to 74 injuries, according to the latest estimates by hospital sources.

The victim is a 53-year-old Greek Communist party unionist, an unemployed constructor worker, father of two children, who passed away of a heart attack, Greek media reported, as opposition political leaders made appeals for calm.

According to Greek authorities, he was not wounded by rocks or petrol bombs, but collapsed amid tear gas, as anarchists clashed with anti-riot police.

The people participated in a peaceful protest of 50,000 people in front of the parliament building staged on a second day of a nationwide general strike by the two umbrella unions of private and public sector employees GSEE and ADEDY and Left parties.

Despite violence, unionists and ordinary protesters vow to continue mobilizations and Greek analysts forecast that following Thursday's outcome in the assembly, the socialist administration will face major problems turning the unpopular measures into action.

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