Pledging more austerity, Greece cuts deal with lenders

Promising to cut pensions and give taxpayers fewer breaks, Greece has paved the way for the disbursement of further rescue funds from international lenders and possibly opened the door to reworking its massive debt.

Officials from both sides reached a deal early on Tuesday on a package of bailout-mandated reforms, ending six months of staff-level haggling. Greek Finance Minister Euclid Tsakalotos announced it with a term associated with papal elections.

"There was white smoke," he told reporters.

Greece now needs to legislate the new measures - which also include opening up the energy market to competition - before eurozone finance ministers approve the disbursement of loans, probably at the next scheduled Eurogroup meeting on May 22.

Athens needs the funds urgently to repay 7.5 billion euros in debt maturing in July.

The Eurogroup meeting, meanwhile,...