The Greek parliament has passed new budget cuts and tax rises two days before a eurozone meeting expected to unblock much-needed bailout funds.
The government led by the leftist Syriza coalition passed the widely unpopular bill by 153 votes to 145.
Greece agreed to a third bailout worth €86bn (£67bn; $96bn) last year.
Demonstrators gathered outside parliament on Sunday to protest against the new legislation. Eurozone finance ministers meet in Brussels on Tuesday.
Image copyrightAFPImage captionProtests continued on Sunday outside parliament
The bill also creates a state privatisation fund requested by its eurozone finance ministers.
One Syriza MP, Vassiliki Katrivanou, voted against the fund and a contingency mechanism that will trigger automatic spending cuts if the country fails to meet the targets of the bailout deal.
Greece is trying to negotiate new aid for a debt payment of €3.5bn due in two months' time.
Earlier this month, parliament approved reforms of the pension and income tax system.
'Did hope die?'
"European leaders get the message that Greece is sticking to its promises," Prime Minister Alexis Tsipras was quoted as saying by AFP news agency before the vote on Sunday. "Now, it's their turn."
"No one in Greece will remain unaffected by the typhoon of the new measures," Kyriakos Mitsotakis, the leader of the New Democracy conservative opposition party said. "Employment is punished, property is prosecuted."
Syriza came to power in the course of two elections last year, first in January on an anti-austerity platform and then in September, after accepting tough conditions for the third bailout.
Reflecting a mood of despondency among many Greeks on Sunday, Elias Toumasatos, a teacher on the island of Cephalonia, told BBC News: "As a Greek citizen, I feel my only strength left is just to be prepared for new cuts and measures. Call it despair.
"Syriza's motto for Jan 2015 elections was 'Hope is coming'. Now people feel totally hopeless. Did hope die on its way here?"
As protesters demonstrated in Athens, a public transport strike continued in protest at the reforms.
British director Ken Loach's film I, Daniel Blake has won the Palme d'Or at Cannes Film Festival.
It was the 79-year-old's second award for best picture at the festival after 2006's The Wind That Shakes the Barley.
Loach attacked the "dangerous project of austerity" as he accepted the award for his film about a middle-aged widower and the UK welfare system.
Kent-born director Andrea Arnold won the competition's Jury Prize for her road movie American Honey.
Irish cinematographer Robbie Ryan shot both films.
Social campaigner
It was the 13th time that Loach, a social campaigner for most of his career and the director of more than 50 movies, has competed at the event.
I, Daniel Blake, which stars stand-up comedian Dave Johns in the title role, was written by long-time Loach collaborator Paul Laverty.
It documents what happens when an older man living in Newcastle has a heart attack and can no longer do his job.
He is declared fit for work, meaning his benefits are stopped, and he begins to go hungry.
'Dangerous austerity'
Accepting the festival's top prize from actor Mel Gibson, Loach said: "We must give a message of hope, we must say another world is possible..
"The world we live in is at a dangerous point right now. We are in the grip of a dangerous project of austerity driven by ideas that we call neo-liberalism that have brought us to near catastrophe."
Loach told the press conference he was "quietly stunned" to have won the award with "the same little gang" from his first win in 2006.
Asked about his plans for the future, Loach gave nothing away, saying: "When you get very old you're just pleased to see the sunrise the next day, so we'll just take each day as it comes."
Image copyrightJOSS BARRATTImage captionI, Daniel Blake stars Dave Johns and Hayley Squires
In the film, Johns meets single mother of two Katie, who moves to Newcastle from London.
Cannes judges praised the actors' depictions of the characters who "find themselves in no-man's land, caught on the barbed wire of welfare bureaucracy as played out against the rhetoric of 'striver and skiver' in modern day Britain".
It was the first film role for Johns, who said he was delighted by the French film prize.
He said: "Ken made a film 50 years ago called Cathy, Come Home and this is actually in the same vein, saying that people who are on the bottom rung of life, you know are struggling.
"I'm a stand-up comic. Working with Ken was just absolutely the most amazing thing and this news that we've won the Palme D'Or - I'm just blown away with it."
Loach, whose past films include 1969's Kes, was up against directors including Spanish Oscar-winner Pedro Almodovar, Sean Penn and Paul Verhoeven.
Image copyrightAFPImage captionThe award winners took to the stage at the end of the closing ceremony
The Iranian film Forushande (The Salesman) by Asghar Farhadi won two awards at the 69th staging of Cannes - best screenplay, and best actor, won by Shahab Hosseini.
The Grand Prix went to Juste la Fin du Monde (It's Just the End of the World), directed by Canada's Xavier Dolan, while Philippine soap star Jaclyn Jose won best actress for her role in Brillante Mendoza's Ma' Rosa.
Double win
Andrea Arnold, originally from Dartford, Kent, won the competition's Prix du Jury (Jury Prize).
Image copyrightREUTERSImage captionAndrea Arnold's film portrays both poverty and persuasion
American Honey, starring Hollywood star Shia LaBeouf, follows a group of wild youths as they travel through US states selling hard luck stories and magazine subscriptions.
Ben Roberts, director of the BFI Film Fund, said: "What a moment for British cinema, and for two important and humane films with so much to say.
"Bravo to Ken and to Andrea and their collaborators - including the unstoppable Robbie Ryan who shot both films.
"This is cinema from the heart, and we're grateful that we have an industry that can support such personal, powerful film-making."
Film critic Jason Solomons said Loach's movie cut through the art and experimentation common at Cannes to "speak to the heart".
"Ken Loach does that with unparalleled skill," he said. "You know it's such an important movie and I'm so glad that it won the Palme D'Or because it gives this movie and its message extra attention that it needs."
UK Labour party MPs, who have opposed the Conservative austerity agenda of welfare cuts, also praised Loach's victory.
Shadow business secretary Angela Eagle tweeted: "Well done Ken Loach!" while Angela Rayner MP said she was "absolutely made up" for the director.
Iraqi Prime Minister Haider al-Abadi has announced the start of a military operation to retake Falluja from the so-called Islamic State (IS).
"Zero hour for the liberation of Falluja has arrived. The moment of great victory has drawn near and Daesh has no choice but to flee," he said.
Iraq's military has already warned civilians to leave the town.
Falluja was the first city to fall to IS in 2014 and is one of only two of its remaining strongholds in Iraq.
The Iraqi military told state TV that those who could not flee should raise a white flag above their homes.
The military, police and volunteer fighters virtually surround the city, about 65 km (40 miles) west of Baghdad.
The Baghdad-based pro-Kurdish news website Shafaq said on Sunday that close to 20,000 police troops had arrived on the outskirts of Falluja ahead of the expected assault.
The BBC's Middle East correspondent, Jim Muir, said between 60,000-90,000 civilians remained in Falluja. Many of them are family members of IS fighters, he said.
IS militants launched a sweeping offensive in June 2014 that overran large areas north and west of Baghdad, but security forces and allied fighters have pushed the jihadists back with support from US-led air strikes.
The Iraqi army, police and irregular forces virtually surround Falluja and have been heavily reinforced in preparation for an assault on several fronts that military sources say could begin in the next day or so, and which they expect to last two or three weeks.
That may be optimistic, given the many weeks it took earlier this year to take full control of Ramadi, another city further to the west.
Falluja has been held by the militants of IS much longer, for nearly two and a half years, and has withstood a massive battering by government shelling and bombing.
But Iraqi military sources believe the number of militants there has been cut roughly in half and that the battle for Falluja will be a lot less tough than it was for Ramadi.
Should IS lose Falluja, it would leave the northern city of Mosul, Iraq's second-largest city, as its only Iraqi stronghold. It continues to hold large parts of territory in neighbouring Syria, though that amount is also dwindling.
Media captionThe Iraqi government has been urged to lift the siege on Falluja, as Ahmed Maher reports
Last month, the United Nations and Human Rights Watch warned civilians still living in Falluja were in danger of starvation.
The World Food Programme said stocks were dwindling as government forces trying to recapture the city had cut supply routes, and IS had stopped people from leaving.
Some residents were eating grass to survive, HRW said.
One report in Vox.com said that a 110lb (50kg) bag of flour, which costs about $7.50 in the US, had been sold for as much as $4,166 (£2,925; €3,650).
Austria's presidential election remains on a knife-edge with all votes from polling stations now counted.
The interior ministry says that Norbert Hofer of the far-right Freedom Party is currently slightly ahead of his rival, Alexander Van der Bellen.
The result will only be decided when hundred of thousands of postal ballots are counted on Monday.
A key campaign issue was Europe's migrant crisis, which has seen asylum-seeker numbers soar.
About 90,000 people claimed asylum in Austria last year, equivalent to about 1% of the Austrian population, and the Freedom Party ran an anti-immigration campaign.
For the first time since World War Two, both the main centrist parties were knocked out in the first round.
The presidency is a largely ceremonial post, but a victory for Mr Hofer could be the springboard for Freedom Party success in the next parliamentary elections, scheduled for 2018.
The presidents of the European Commission and the European Parliament, Jean-Claude Juncker and Martin Schulz, have both expressed concern over a Hofer victory.
Analysis: Bethany Bell, BBC News, Vienna
Austria is split. The soft-spoken, charismatic Mr Hofer, sometimes described as a wolf in sheep's clothing, caused turmoil in Austrian politics when he won a clear victory in the first round of voting in April.
But now his rival, Mr Van der Bellen from the Greens, has caught up. The far right has profited from deep frustration with the established parties of the centre left and the centre right in Austria. And in recent months, it has been boosted further by fears about the migrant crisis.
If Mr Hofer wins, it could have an impact far beyond Austria's borders - possibly giving momentum to far-right and Eurosceptic parties in other EU countries.
Postal voting accounts for 750,000 ballots, roughly 12% of Austria's 6.4 million eligible voters, said Interior Minister Wolfgang Sobotka.
"None of us wished for this," Mr Hofer said when he and Mr Van der Bellen were interviewed by ORF after the vote on Sunday.
"After all, both of us wanted to have a good night's sleep but it is so exciting. I've been in politics for a long time but I've never experienced an election night like this one."
Whoever won, he said, would have "the job of uniting Austria".
Mr Van der Bellen said that if he were elected president he would be welcome in all member states of the EU.
"I have been pro-European during the five months of campaigning," he said. "I made clear how important the European Union is for freedom, security and prosperity - also in Austria."
In the first round, Mr Hofer secured 35% of the votes, while Mr Van der Bellen polled 21%.
The two rivals had engaged in an angry TV debate earlier in the week, described as "political mud-wrestling" by commentators.
Vying to lead Austria
Norbert Hofer
Image copyrightEPA
Age: 45
Background: Aeronautical engineer
Politics: Far-right Freedom Party
Campaign soundbite: "To those in Austria who go to war for the Islamic State or rape women - I say to those people: 'This is not your home'"
Alexander Van der Bellen
Image copyrightAFP
Age: 72
Background: Economics professor
Politics: Former Green Party leader
Campaign soundbite: "I've experienced how Austria rose from the ruins of World War Two, caused by the madness of nationalism."
AFP
