Greece has sealed a deal with the European Union and IMF that opens the door to a multi-billion euro financial bailout and will require big sacrifices from the Greek people, Reuters quoted Prime Minister George Papandreou as saying on Sunday. The aid package, expected to total up to 120 billion euros ($160 billion) over three years, still needs backing from Greece's European peers as a May 19 deadline looms when Athens badly needs funds to make a big debt repayment to its creditors. Telling angry Greeks to chose between a painful rescue or economic collapse, the government announced budget cuts of 30 billion euros ($40 billion) over three years, on top of measures already agreed. Athens now aims to bring its towering deficit back to the EU limit by 2014, two years later than originally promised. The package is the first rescue of a member of the 16-nation euro zone and aims to stem a debt crisis that has shaken financial markets worldwide. But Greeks have already taken to the streets against the austerity drive. "It is an unprecedented support package for an unprecedented effort by the Greek people," a sombre Papandreou told a televised cabinet meeting. "These sacrifices will give us breathing space and the time we need to make great changes," he added. "I want to tell Greeks very honestly that we have a big trial ahead of us." -- SPA
