21 February 2012 Last updated at 09:58 ETBlind people were protesting against the cuts in Athens on Tuesday
The Greek cabinet is to meet for talks on launching the painful reform process stipulated by creditors in return for a massive bailout and debt write-down.
Loans of more than 130bn euros (£110bn; $170bn) and a write-down of at least 107bn were agreed overnight at marathon talks in Brussels.
Eurozone leaders said the deal had saved Greece from a default.
But Greeks face new spending cuts and state sector job losses in order to slash national debt within eight years.
Austerity measures implemented under the 2010 bailout, which was worth 110bn euros, sparked violent protests.
News of the deal was greeted with a mix of resignation and anger among the Greek public, correspondents say.
Responding to a remark by Prime Minister Lucas Papademos that it was a "historic day for the Greek economy", blogger Zoe Mavroudi tweeted: "Every time our unelected banker PM Papademos says 'historic day' please replace 'historic' with 'black'."
International financial experts have warned that Greece will need more help if it is to meet its debt reduction target.
Under the deal hammered out in Brussels
- Greece will undertake to reduce its debt from 160% of GDP to 120.5% by 2020
- Private holders of Greek debt will take losses of 53.5% on the value of their bonds, with the real loss as much as 70%
- Greece's economic management will be subjected to permanent monitoring by eurozone experts on the ground
- Greece will amend its constitution to give priority to debt repayments over the funding of government services
'Embarrassed to be Greek'The country has just over a week to approve a round of spending cuts of more than 3bn euros tied to the bailout.
- Greece will set up a special account, managed separately from its main budget, that must always contain enough money to service its debts for the coming three months
Continue reading the main storyTax and pensions will be affected, Finance Minister Evangelos Venizelos told reporters.
A meeting of the Greek coalition cabinet has been called for Tuesday evening, after which the cuts may be tabled to parliament for a vote on Wednesday.
While the cuts should be passed by the current parliament, it is unclear how the constitutional amendment on debt repayment will fare when it comes before MPs within the next two months.
An early general election is expected to be held in April, putting pressure on Greece's mainstream socialist and conservative parties.
Trade unions have called for new street protests on Wednesday and the head of the opposition Communist party has vowed to oppose new cuts.
"We insist on daily struggle to thwart the measures and this struggle cannot be a defensive one," said Aleka Papariga.
The prospect of permanent eurozone monitoring is also seen by many Greeks as a blow to national pride.
"We are like drug addicts who have just been given their next dose, this is what they've reduced our country to," retired nurse Ioulia Ioannou, 70, told Reuters news agency in Athens.
"For the first time, I'm embarrassed to say I'm Greek."
'Greek problem'The German and Dutch parliaments will vote on the bailout next week, amid strong reservations over lending more money to Greece.
Jose Manuel Barroso: "I am aware of the heavy burden that the Greek people are having to bear"
German Finance Minister Wolfgang Schaeuble recently caused an outcry by suggesting that Greece was a "bottomless pit".
But European Commission chief Jose Manuel Barroso said on Tuesday the new loans package would prevent "an uncontrolled default with all its grave economic and social implications".
Greece, he added, had no alternative but to pursue fiscal consolidation and structural reform.
Jean-Claude Juncker, who chairs the Eurogroup of finance ministers, said the bailout would "secure Greece's future in the euro area".
Italian Prime Minister Mario Monti, himself a technocrat brought in to turn around his country's finances, said: "It's an important result that removes immediate risks of contagion."
Swedish Finance Minister Anders Borg said that while the Greeks remained "stuck in their tragedy" the talks had "reduced the Greek problem to just a Greek problem".
The agreement was thrashed out over 13 hours at talks involving the international "troika" of the IMF, the European Central Bank and the European Commission.
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Article Source : BBC News
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