“There's a vista of division within the party, part of Syriza officials and lawmakers do not accept the tactics followed by our prime minister,” Yanis Balafas, a Syriza lawmaker close to Tsipras, said in an interview. “What matters now is that the worst-case scenario of a default has been averted.”

After a six-month offensive against German-inspired austerity succeeded only in deepening his country's economic mess and antagonizing his European counterparts, there was little for Tsipras to tout as evidence of a face-saving compromise following a rancorous summit in Brussels that ran for more than 17 hours.

“Trust has to be rebuilt; the Greek authorities have to take on responsibility for what they agreed to,” German Chancellor Angela Merkel said after the meeting ended Monday morning. “It now hinges on step-by-step implementation of what we agreed.”

'Successful Evaluation'

The conditions that Tsipras swallowed comprised a laundry list of unfinished business from Greece's two previous bailouts and a new demand for the government to transfer 50 billion euros of state assets to a holding company that will seek to either sell or generate cash from them.

Tsipras hailed the fact the fund would be based in Greece, not Luxembourg as had been suggested. He also latched onto the prospect of debt relief, albeit distant, after creditors rejected his pleas for a cut in the face value of Greek debt of about 310 billion euros. Merkel said interest-payment grace periods and longer maturities will “be discussed once there is a successful evaluation of the new Greek program.”

While the summit agreement averted a worst-case outcome for Greece, it only established the basis for negotiations on an aid package, which would also include 25 billion euros to recapitalize its weakened financial system.

The Stoxx Europe 600 Index climbed 1.8 percent at 4:43 p.m. in Frankfurt, while the euro dropped 1.2 percent.

As the summit approached its climax in the early hours of Monday, the main session broke at least four times to allow Tsipras to confer with associates in Athens, according to one official with knowledge of the talks.

Some leaders threatened to leave between 2 a.m. and 4 a.m. when a deal looked very unlikely given the late hour. By 6 a.m., both the German and Greek delegations said that a deal was impossible and prepared to leave, before being urged to give it one last push, according to a separate EU official.

The terms are significantly tougher than those Tsipras labeled “blackmail” when he persuaded Greek voters to reject them in a referendum a week ago. In addition to requirements on pensions and sales taxes, measures that Tsipras accepted last week, the leaders demanded that creditor representatives return to Athens with full access to ministers and a veto over relevant legislation, intrusions that he has long rejected.

“We had to succeed,” said French President Francois Hollande. “If Greece had left the euro zone, what would the world have said?”

With the banks staying closed on Monday, the ECB's Governing Council kept the cap on Emergency Liquidity Assistance unchanged, signaling a desire to wait for Greek lawmakers to approve reforms first.

Tsipras said that the deal had prevented the banking system from collapsing but will inevitably harm the economy.

“We put up a hard fight for the past six months and we fought to the end in order to get the best out of it, to get a deal which will allow the country to stand on its feet and the Greek people to keep fighting,” Tsipras said in Brussels.

–With assistance from Nikos Chrysoloras and Marcus Bensasson in Athens, Kevin Costelloe, Patrick Donahue, James G. Neuger, Stephanie Bodoni, Ott Ummelas, Radoslav Tomek, Esteban Duarte, Jonathan Stearns, Mark Deen, David De Jong and Karl Stagno Navarra in Brussels, Angela Cullen in Frankfurt, Elco van Groningen in Amsterdam and Neil Denslow in London.

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