Christine Lagarde

Greece dodges new crisis but austerity remains part of life

Greek stocks rallied to two-year highs on Friday, after the government struck a deal with European creditors that means the country won't face another brush with bankruptcy anytime soon. However, for austerity-weary Greeks the deal does little to lift the pall from years of belt-tightening.

After months of haggling that raised fears of another escalation in Greece's nearly eight-year debt crisis, the 19-country eurozone agreed late Thursday to release a further 8.5 billion euros ($9.5 billion) from its current, third bailout after the Greek government delivered on an array of reforms. Getting the money was becoming increasingly urgent as Greece has a big debt repayment hump next...