Greek bailout deal faces review by euro officials next week

Jonathan Stearns & Rebecca Christie

Euro-area finance ministers reached a provisional deal intended to keep aid flowing to Greece in return for a commitment to budget targets, buying time to work out the detail of longer-term Greek financing.

Talks in Brussels between officials from the 19 euro-area countries concluded Friday evening with an agreement to extend bailout funds to Greece for four months. In return, on Monday Prime Minister Alexis Tsipras?s government must submit a list of economic measures it will undertake. Finance chiefs will then decide whether his proposals go far enough.

?It?s an important first step,? Irish Finance Minister Michael Noonan told reporters after the meeting. ?We?ll see if it?s enough on Monday night-Tuesday morning.?

U.S. stocks rose, sending benchmark indexes to records, on the prospect of an easing in the standoff between Greece and its creditors. The breakthrough reduces the immediate risk of Tsipras?s government running out of cash as early as next month.

The text of the agreement allows Greece to lower previously agreed targets on reaching a primary budget surplus, potentially freeing up some money to meet at least some of Tsipras?s election pledges. A Greek official said that tax increases and cuts to pensions had been averted in the accord.

?Our commitments are commitments we would want to make anyway,? Greek Finance Minister Yanis Varoufakis told reporters. ?Sometimes like Ulysses you need to tie yourself to a mast in order to get where you?re going and avoid the sirens.?

Greek Saga

The agreement opens a new chapter in a saga that goes back to 2010, when Greece became the first euro-area country to request an international bailout, causing a ripple effect that...