Greek deal reached

Political parties in Athens have reached a deal on austerity measures needed in order for Greece to qualify for a second package of emergency loans. Prime Minister Lucas Papademos' office confirmed that the main coalition parties had agreed to terms set by Greece's international creditors. The talks had dragged on for several days.

Cuts to state and private pensions worth some 300 billion euros ($398 billion) had been amongst the most contentious measures.

The deal was inked as eurozone finance ministers gathered in Brussels ready for further talks on Greece.

"A few minutes ago I got a phone call from the Greek prime minister, who told me that a deal has been reached and has been endorsed by the major parties," European Central Bank (ECB) President Mario Draghi, who will attend the eurozone talks in Brussels later, said. Draghi also announced that the ECB would hold interest rates steady at the record low rate of one percentage point.

The euro, safe haven German sovereign bonds and several stock exchanges responded positively to the news.

Just in time

Socialist party leader George Papandreou, Conservative Antonis Samaras and right-wing leader Giorgos Karatzaferis had already agreed to other cutbacks - including a reduced minimum wage, 15,000 layoffs and a pay freeze in the public sector until unemployment falls to 10 percent - in overnight talks that concluded early on Thursday.

"The country's survival over the coming years depends on a bailout," Finance Minister Evangelos Venizelos said after the overnight talks. "It will determine whether the country remains in the eurozone or whether its place in Europe will be in danger. We must look at the national interest of our children."

Greek and European leaders have been working against the clock, as the government in Athens needs fresh capital to meet a 14.5-billion-euro bond repayment due on March 20.

msh/mz (AFP, AP, dpa, Reuters)