Prime Minister Stephen Harper on Thursday said he was encouraged by the deal agreed by euro zone leaders, calling Europe's economic crisis the most immediate and imminent threat to global recovery.

Euro zone leaders, after more than eight hours of negotiations, agreed a deal with private banks and insurers to accept a 50 percent loss on their Greek government bonds under a plan to lower Greece's debt burden and try to contain the two-year-old euro zone crisis.

I see as positive steps, the actions taken by our European friends just a few hours ago, Harper said in the Australian city of Perth where he will attend a summit of Commonwealth countries. These are steps in the right direction. Progress has been made.

Of course, we still await the elaboration of further details and successful implementation, as we approach the G20 Summit (next month), Harper added.