World Economy

Greek PM Warning Over Debt Deal

Greek PM Warning Over Debt DealGreek PM Warning Over Debt Deal

Greek Prime Minister Alexis Tsipras has warned of “real difficulties” ahead, as his government faces a Monday deadline to submit a list of reforms to lenders.

Under a deal agreed on Friday, the list must be approved by the international creditors in order for Greece to secure a four-month extension of its bailout, BBC reported.

“We won a battle, not the war,” Tspiras said on Saturday. He hailed the agreement as a “decisive step” that “achieved much” towards ending austerity, but added: “We have a long and difficult road ahead.”

The deal is widely regarded as a major climb down for the PM, who won power vowing to reverse budget cuts. Reports from Athens say the government is engaged in a hard sell to the Greek people over the deal with eurozone ministers and the IMF in Brussels.

The Greek cabinet is discussing the potential list of reforms, which must be approved before eurozone members ratify the bailout extension on Tuesday.

Analysts say a collapse of the deal would revive fears of an exit from the euro, a so-called “grexit” - something both the EU and Greece say they want to avoid.

BBC reporter in Athens says, after the late-night deal comes the hard sell to the Greek public. A government elected by promising to reverse austerity and end the bailout has had a major climb-down.

It has had to accept supervision by its creditors – no moves without EU agreement – and a loan program with conditions.