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 Greece took a step back from imminent default Wednesday by passing a stinging new austerity package but failed to dispel fears that its mounting debt is becoming unsustainable.

The Seattle Times writes the Greek government eked out a legislative victory that saw lawmakers defy raging street protests outside Parliament to vote 155-138 in favor of $40 billion in budget cuts and tax increases over the next few years.

At the center of the plan is $70 billion to be raised by privatizing state assets, including major companies that generate electricity, run trains and employ tens of thousands of people.

The showdown came after warnings from European leaders that failure to pass the austerity plan would spell bankruptcy for Greece and potential disaster for the euro by spreading instability to more populous debt-laden nations such as Spain and Italy. That turmoil, in turn, might shake U.S. markets and other major economies far from Greece.