George Papandreou, Greece's prime minister, managed to use his tight majority to push through the deeply unpopular bill. The main austerity bill, which includes tough spending cuts and a raft of tax rises, was passed on Wednesday amid violent demonstrations. But Thursday's vote was crucial for implementing the measures and was approved on a quieter day on the streets of Athens.
International authorities said if the measures were passed they would release the fifth tranche of the €110bn bail-out agreed last May. They will also start working on a fresh bail-out, which could be worth up to €150bn, to manage Greece's €360bn debt pile and avoid the eurzone's first-ever default.
Stock markets around the world rose for the fourth day. In London, the FTSE100 was up 1.5pc, while Germany's DAX jumped 1.1pc and France's CAC rose 1.5pc.
In Germany, Wolfgang Schauble, finance minister, announced that the country's leading banks had agreed to roll over €3.2bn of Greek government bonds.
The deal is subject to final agreement but heralded as a significant step forward in Germany, which has demanded that the private sector shares the cost of the Greek bail-out.
Josef Ackermann, chairman and chief executive of Deutsche Bank, said the proposal represented a "voluntary and substantial" contribution to solving the sovereign crisis.
The bank boss said the deal had been based on a deal put forward by French banks that proposed rolling over 70pc of the Greek bonds that were due to mature before the end of 2014.
Separately, Jean Claude Trichet caused a stir by saying that the European Central Bank was in "a state of strong vigilance". The phrase often signals a quarter-point rise in interest rates is imminent.