The snap election was called by Prime Minister Alexis Tsipras as he stepped down following a referendum opposing an EU bailout plan his government had negotiated.
Alexis Tsipras, fresh from a bruising battle to push a European bailout plan through parliament, will resign ahead of fresh elections set for Sept. 20.
The approval came despite a rebellion within the ranks of the ruling leftist party over harsh austerity measures imposed in exchange for the $93 billion deal.
Alexis Tsipras spoke to the European Parliament in more measured tones, acknowledging that Greece's financial plight was not just caused by creditors. But he also stood his ground on Greece's debt.
Finance Minister Yanis Varoufakis said his resignation could help the prime minister negotiate a better deal with the EU. However, he said, he will wear the "loathing" of Greek creditors "with pride."
Prime Minister Alexis Tsipras was elected on the promise of renegotiating the regimen of austerity imposed on Greece by its creditors. And Europe warned him it expected Greece to repay its debts.