With relief and optimism, Greece on Friday welcomed the new bailout pact reached by European counterparts in Brussels to support the debt-stricken country, and braced for next steps needed to exit the crisis.

"The second pact provides a strong safety net for Greece and the European common currency as well, but there is still lots of work to be done," said Greek Prime Minister Papandreou.

"We have been through a nightmare, but it has not ended. We must not waste time and step up crucial structural reforms," said Papandreou while addressing a cabinet meeting in Athens upon his return from Brussels.

"Europe has eventually woken up. Now it is our turn to join forces to overcome the crisis," Greek President Papoulias said during a meeting with Papandreou for a formal briefing on the terms of the agreement.

According to Thursday's agreement, Greece will receive additional 109 billion euros (157 billion U.S.dollars) aid to the first package secured in May 2010.

In a significant development for Athens, the European Central Bank will support the Greek banking system accepting as collateral Greek bonds, in case credit agencies fulfils their warnings and use the term "selective default" for Greece due to the involvement of private investors in the new pact.

Since the outbreak of the debt crisis in late 2009 the country has narrowly escaped bankruptcy twice -- last spring and this July -- with international aid. In exchange, Greece pledged painful reforms that have been met with strong reactions from part of Greek society.

Both Papoulias and Papandreou renewed a plea for wide consensus to opposition parties, labor unions and citizens which still object to the austerity and reform policies to be implemented over the next four years under the bailout plan.

In their first reactions to the new deal, opposition parties continued to criticize the socialist government, expressing doubts over the outcome of the new bailout.

"A new, strong Greece must emerge through dialogue, so next generations will not face a similar challenge of bankruptcy," Papandreou stressed, noting that European partners offer Greece an opportunity to withstand the enormous pressure of international markets and credit rating agencies, manage a sustainable debt and return to development and prosperity.

"After Thursday's success for Greece and Europe, Greek people should be more optimistic about the future. Thanks to Greek citizens' sacrifices and the support of our partners, the Greek banking sector is one of the strongest in the continent and we have breathing space to focus on development policies beyond the austerity drive to slash deficits," said Greek Finance Minister Evangelos Venizelos during a press conference in Athens.

Greek media welcomed the news from Brussels with relief, but voiced some anxiety over the next steps and the final result of efforts to tackle the crisis.

Local newspapers for instance run front page stories entitled "helping hand for Greece and euro - the marathon race continues with obstacles ahead" or "life raft under heavy price at the last minute".

Source: Xinhuanet