Euro zone leaders agreed on Saturday to lower the interest rate and extend the maturity of 110 billion euros (95 billion pound) of loans to Greece. In turn, Greece promised to speed up structural reforms, complete a 50 billion euro state assets sale plan and introduce a strict fiscal framework to rein in its budget deficit and debt.
"These are landmark decisions," Papandreou said during a cabinet meeting broadcast live on state television.
"We should not miss this opportunity," he said. "That's why, as far as the government is concerned, I will ask more commitment to the task we have undertaken. There is still work to do."
The ruling Socialists are still leading the conservative opposition in opinion polls, but support is slipping as pay cuts, tax rises and structural reforms prescribed by the EU and the IMF have dented their popularity.
In another sign of the enormous task the government is facing, ratings agency Moody's last week slashed Greece's credit rating by three notches, saying Athens had trouble collecting revenue and there was a risk of a debt restructuring.
Papandreou also encouraged cabinet ministers and Greek citizens to stand up to vested interests which he said threatened the fiscal consolidation plan.
"Despite current difficulties, we should remain committed to our target," he said. "We won a battle but the war is not over."
source: REUTERS
