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“Continued fiscal and structural reforms are Greece’s best guarantee to overcome the current economic and social challenges,” European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso said in a joint statement.

But an early market rally faded quickly Monday as investors turned their attention back to the other financially unstable economies in the Eurozone, Spain and Italy.

In Athens, stocks lost initial strong gains but still closed up 3.64 percent.

Greece has survived for more than two years on rescue loans from its European partners and the International Monetary Fund. The vital bailouts are conditional on the country continuing with its deeply unpopular package of spending cuts, and pushing through new structural reforms.

Athens has pledged to push through new savings worth nearly €15 billion ($18.9 billion), raise billions in company and real estate privatizations and sack about 150,000 civil servants.

Both New Democracy and PASOK want an extension of at least two years to the austerity and reform deadline, to alleviate pressure on a population exhausted by two-and-a-half years of deep income cuts and tax hikes.

Unemployment has soared to more than 22 percent, while Greece’s economy is in a fifth year of deep recession.

Menelaos Hadjicostis and Elena Becatoros in Athens contributed to this report.