Greek leaders agree to new cuts

By Nicholas Paphitis

Associated Press

Published: Thursday, Feb. 9 2012 6:45 a.m. MST

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A stray dog stands in front of a banner reads ''We resist'' carried by electricity company employees Public Power Corporation, PPC, during a protest against Greek government's plans to privatize part of the power distribution service, in Athens, on Thursday, Feb. 9, 2012. Greece's crucial euro 130 billion ($173 billion) bailout was in limbo Thursday, after political leaders failed to accept the entire batch of new austerity measures that are demanded by creditors but have fueled outrage in the recession-hit country.

Thanassis Stavrakis, Associated Press

Summary

Greek Prime Minister Lucas Papademos and his coalition partners have struck a deal on new cuts demanded by creditors to secure a vital €130 billion bailout.

ATHENS, Greece — Greek Prime Minister Lucas Papademos and his coalition partners have struck a deal on new cuts demanded by creditors to secure a vital €130 billion bailout.

A spokeswoman for the prime minister's office says the agreement with the majority Socialists and the conservatives will allow alternative cuts to those rejected early Thursday during a meeting of the three coalition party leaders.

She spoke on customary condition of anonymity.

Although all the other cuts demanded by Greece's eurozone partners and the International Monetary Fund were approved, party leaders had balked at new pension cuts.

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