Greek leaders agree to new cuts

photo In this Wednesday Feb, 8, 2012 photo a man scavenges through rubbish in Athens. Greece's statistical authority says unemployment in the recession-bound country reached a record 20.9 percent in November, with more than a million people without a job. In the 15-24 age group, unemployment reached 48 percent. (AP Photo/Dimitri Messinis)

NICHOLAS PAPHITIS, Associated Press

ATHENS, Greece (AP) - 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.

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