Greek Prime Minister Antonis Samaras has said he will not let neo-Nazi party Golden Dawn "undermine" democracy.
His remarks came after a Golden Dawn supporter allegedly admitted killing an anti-fascist activist.
"This government is determined not to let the descendants of
the Nazis poison our social life or commit crimes," Mr Samaras said in a
national TV address.
Hundreds of mourners attended the funeral of Pavlos Fyssas, 34 - stabbed to death on Wednesday near Athens.
There is profound anger in Greece over the events, the BBC's Mark Lowen in Athens reports.
The far-right party Golden Dawn has been blamed for a tide of attacks on immigrants.
Greece's deputy PM said it must now be treated as a "criminal organisation".
White coffin
In a graveyard in Athens cemetery, more than 2,000 mourners
bid farewell to Mr Fyssas, an anti-racism rapper who went by the stage
name Killah P.
"Pigs! Fascists! Murderers!" mourners chanted, the Reuters news agency reports.
Mr Fyssas's white coffin was carried by his relatives onto a hill near the suburb of Keratsini were he was stabbed.
As others sang his songs, one man shouted: "Immortal!"
Several rallies by anti-establishment groups and unions,
which turned a 48-hour anti-austerity strike into a protest over his
killing, were planned for later on Thursday.
The 45-year-old suspected killer, who has been pictured in
Greek media with his arm around a Golden Dawn lawmaker, was due to
appear before a prosecutor on Saturday.
Golden Dawn, Greece's third most popular party, condemned the
killing and denied involvement in the attack. It said those who accused
the party were "wretched sycophants" trying to win votes.
But Evangelos Venizelos, who is the head of the Pasok
socialist party, the junior party in the coalition government, said
Golden Dawn had "violence as its priority".
He and Prime Minister Samaras have agreed to use all
available legal powers to crack down on the movement, Greek daily
Kathimerini reports.
Demonstrations
Thousands of people rallied on Wednesday at the spot where Mr Fyssas was killed.
Violence broke out in the evening, when youths set fire to
rubbish bins, broke up paving stones and threw pieces at police, who
fired volleys of tear gas. At least 23 people were arrested.
There were also clashes at demonstrations in the cities of Thessaloniki and Patras.
Golden Dawn denies being a neo-Nazi movement, though its badge
resembles a swastika, some senior members have praised Adolf Hitler, and
its members wear black T-shirts and combat trousers at anti-immigrant
demonstrations.
It came from nowhere to win nearly 7% of the vote in 2012
general elections and took its place in parliament. Opinion polls
suggest its support has risen still higher.
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