Greece has reached an important debt deal with European creditors after the country agreed to further austerity measures and plans to reduce government spending in near future. Greece will introduce income tax reforms in order to improve government revenue. Greece also agreed to pension reforms, a step criticized by Greek pensioners. With new austerity measures, Greece has reached a better deal with European creditors.

The deal was announced on Tuesday and Greek Finance Minister Euclid Tsakalotos has confirmed terms of the deal. Greece will open up its energy market for competition from more players. Greek lawmakers will have to take a few more steps in order to finalize the new debt deal with European creditors. However, it could be little difficult for the current government as the main opposition party New Democracy has opposed the measures agreed by the government to secure a debt deal.

Germany is among major lenders and the country has been critical about overspending by Greek government. German officials were confident that Greece would recover and with firm majority in the parliament, the reforms should clear any hurdles.

In an interview, Interior Minister Panos Skourletis said, “The consequences for every government, including ours, that is obliged to implement bailout measures, is the risk of damaging the relationship with society, particularly the groups that you want to represent.”

Currently, Greece has debt at 179 percent of its gross domestic product. Greece needs $8 billion to meet its next debt repayment deadline in July. After the deal was announced, Euro firmed up against the USD.

After the deal was announced, Greek stock market firmed up by nearly 3 percent. Among the major gainers were banking stocks.