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 euro (£109 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 today during a meeting of the three coalition party leaders.
Although all the other cuts demanded by Greece's eurozone partners and the International Monetary Fund were approved, party leaders had resisted new pension cuts.
Greece needs the money to avoid defaulting on its debts next month when a big bond repayment is due - a scenario that could send shock waves all round the European economy.
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