The chancellor of the exchequer has welcomed the deal worked out by EU leaders to stabilise the Euro.
An agreement with the banks and other investors will see a 50 per cent write-off of Greek debt.
European leaders also agreed to increase the Eurozone's bailout fund to 1 trillion euro (£880 billion).
"Our view is that last night very good progress has been made towards solving the immediate crisis, very good progress on all fronts," George Osborne told the Commons today.
"The deal put together is much better than yesterday afternoon. But much detail remains unresolved and having put pressure on the eurozone to get this far, we have to keep up the pressure to get the details completed.
"They have started down the right road and now they have to finish the job."
Osborne said the UK will not pay directly into the bailout fund.
"The decisive resolution of this crisis would provide the single biggest boost to the British economy this autumn, while the break-up of the euro would be the single greatest threat to our prosperity," he said.
"Our view about how to solve the eurozone's immediate problems has been clear, consistent and forcibly expressed."
He reminded MPs that the government was pressing for greater fiscal integration in the Eurozone.
"But if the solution is to last, then the members of the euro also, as I said many months ago, need to address the logic of monetary union by pursuing greater fiscal integration within the eurozone while at the same time, we protect Britain's interests," he said.
"And we have to improve competitiveness, competitiveness in the peripheral economies in the eurozone as measured against the core economies like Germany, and competitiveness across the whole European continent versus the rest of the world.
"This is the solution of the crisis that I've been advocating for months and the solution once again advocated by the prime minister at yesterday's European Council."
Shadow chief secretary to the Treasury Rachel Reeves, standing in for shadow chancellor Ed Balls welcomed the fact that some agreement has been reached.
"With so little detail there remain so many unanswered questions," Reeves added.
"Whatever happens in the eurozone will have a huge ramifications for British families and for British businesses,” she told the House.
Reeves asked if the deal amounted to the ‘big bazooka’ that has been referred to in recent weeks or if it meant “we would be back here again in a few months time, which would mean further uncertainty undermining confidence, undermining investment, undermining growth.”
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