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.

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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