Greek leaders agree new austerity measures

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

Greece has reached a tentative agreement on new austerity cuts demanded by creditors to release a €130bn bailout, hours before a crucial meeting of finance ministers in Brussels.

Prime Minister Lucas Papademos' office said the agreement with the majority Socialists and the conservatives will allow alternative cuts to those rejected earlier during a marathon meeting of the three coalition party leaders.