Greece strikes deal to avoid default

FRANKFURT, Germany— Greece’s fractious political leaders struck a deal Thursday to make deep cuts in government jobs and spending to help save the country from a default that could shock the world financial system.

The deal is one of two critical steps Greece must take to receive a $170 billion bailout from other countries in Europe and around the globe. European ministers said the deal needs to go further and gave Greece until the middle of next week to find an extra $430 million in savings, pass the cuts and get written guarantees that they will be implemented. Greece is expected to rush the new austerity measures through parliament by late Sunday.