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President of the International Monetary Fund (IMF) Christine Lagarde (R) speaks with Greece's Finance Minister Evangelos Venizelos (L) at the EU headquarters in Brussels on Feb. 9. (John Thys /AFP/Getty Images)
Greece’s political leaders on Thursday have come to an agreement on austerity cuts to secure a $170 billion bailout from the eurozone and the International Monetary Fund.
“The government’s discussions with the troika were concluded successfully this morning on the issue which had remained open for further elaboration. The political leaders have agreed on the result of these discussions,” Prime Minister Lucas Papademos’s office said in a statement.
The austerity measures have sparked a number of protests and strikes throughout Greece in recent months. Unions have already proposed a 48-hour strike to protest the cuts.
Mario Draghi, the head of the European Central Bank, confirmed that the deal between Greece’s political parties was completed. “This afternoon we will be having a euro group meeting with the ministers, and we will be having a full report of this, the agreement, and also a discussion of the further steps,” he told the Athens News.
According to the publication, the austerity cuts will include reducing the country’s minimum wage by 22 percent, among other cuts. Meanwhile, first-time employees between the ages of 18 and 25 will have their minimum wages reduced by another 10 percent.
“On this new programme will depend not only the financial survival of the country for the coming years but also whether the country will remain in the eurozone or endanger its European prospects,” said Finance Minister Evangelos Venizelos, who attended the meeting between Papademos and the three other major parties, according to Athens News.
