"This is a day of liberation," Tsipras declared, standing on a hilltop overlooking a bay on the Ionian island of Ithaca.
Talks between Greece, the European Union and International Monetary Fund have stuttered for months due to differences over Greece's fiscal progress, labour and energy market reforms, rekindling worries of a new crisis in Europe.
A total of 196 lawmakers out of 257 present from across the party divide approved the bill deepening a row that has also brought simmering EU disputes over austerity to the fore.
The talks have already suffered months of delays and Greece wants to wrap them up as quickly as possible so that it can unlock the next tranche of its 86-billion-euro (USD 95 billion) bailout, ahead of a huge European Central Bank payment due in July.
Tsipras' office yesterday said the leftist premier had asked EU President Donald Tusk to call a summit to help facilitate negotiations with the debt-ridden country's creditors.
Just over ten hours of overnight negotiations between Athens and its lenders - the European Commission, the European Central Bank, European Stability Mechanism and the International Monetary Fund - broke off shortly before 0400 GMT. They were scheduled to resume later Monday.
In July, Greece accepted a three-year, 86-billion-euro (USD 94 billion) European Union bailout that saved it from crashing out of the eurozone. But the bailout came with strict conditions such as fresh tax cuts and pay cuts.
On Thursday, European leader tried a different tack, warning economic migrants not to even attempt to come to Europe.
"Do you seriously believe that all the euro states that last year fought all the way to keep Greece in the eurozone - and we were the strictest - can one year later allow Greece to, in a way, plunge into chaos?" Merkel said in a TV interview Saturday.
Greece in July accepted a three-year, 86-billion-euro (USD 93-billion) EU bailout that saved it from crashing out of the eurozone, but the deal came with strict conditions. Athens has since adopted a number of the unpopular reforms but creditors have wanted it to do more.
Athens signed up to a new aid programme worth up to 86 billion euros earlier this year, but payment of part of an initial tranche had been held up over disagreement on regulations on home foreclosures and handling tax arrears to the state.
A majority of lawmakers in the 300-seat parliament approved a bill which improves on previous legislation for the calculation of pensions, forces Greece to comply with EU energy efficiency rules, lifts obstacles for the sale of Greece's largest port and scraps tax breaks for farmers.
In the closing days of Tsipras' last administration, Athens signed up to more tax hikes and public spending cuts in return for a three-year, 86-billion-euro (USD 96-billion) EU bailout.
Market consensus feels India not immune to emerging market sell-off. According to Aakash Praksh of Amansa Capital India will do very well over next 3-5 years but adds that in the short-term if EMs get outflows, India will get sold.
With the latest general election results due on Sunday, and polls suggesting a tight race to govern the struggling euro zone economy, CNBC looks at why this could be an important vote for the country – and the single currency.
Euro zone finance ministers, better known as the Eurogroup, are meeting in Luxembourg on Saturday to discuss the latest developments in Greece, and how they could affect the first review of the country's 86 billion euro (USD 97.4 billion) bailout due in October.
Portugal goes to the polls early next month and Spain is expected to hold an election by year-end, with recent polls in both countries showing tightly-run races so far.
Pointing to the parliament building overlooking his small cafe in Athens' Syntagma Square, the 35-year-old blames Greece's turbulent politics for the troubles of its banking system.
In a campaign speech in the northern town of Thessaloniki, Tsipras offered no new policy ideas but pledged thousands of new jobs and an attack on corruption.
Since the last auction on August 5, Athens and its international creditors agreed a third huge international bailout for the debt-stricken country, worth 86 billion euros over three years.
"Today the great electoral battle begins. The Greek people will give a strong mandate for the present and the future," Tsipras said in a statement to Avgi, the Syriza daily.
President Prokopis Pavlopoulos said he had chosen Vassiliki Thanou, the head of Greece's Supreme Court and the first woman to assume the post.
Tsipras, who called for a fresh vote after suffering a major rebellion in his hard-left Syriza party over Greece's huge new international bailout, dismissed suggestions he could work with the conservative opposition New Democracy, the Pasok socialists or the centre-right Potami if the poll results were inconclusive.
Greece is becoming near-Italian in the frequency of its elections. Why is this one being called and why is it so important? We explain below.
Tsipras's announcement came after debt-crippled Greece paid a huge debt to the ECB on Thursday, effectively starting its third mammoth bailout, expected to cost as much as 86 billion euros (USD 96 billion) over the next three years.