Greek crisis: Government submits reform plan in bid for new aid deal - as it happened
European council president Donald Tusk has backed calls for Greece's debt sustainability to be tackled as part of a third bailout
Read our latest live blog on the Greek debt crisis
12.15am BST
So to recap, Greece has put forward a plan of reforms, spending cuts and tax rises that is close to what was demanded by its creditors before Alexis Tsipras called last Sunday's referendum.
The plan includes sweeping chnages to VAT to raise a full 1 percent of GDP, moving more items to the 23% top rate of tax, including restaurants - a key battleground before.
11.44pm BST
The Greek proposal doesn't appear to cover debt relief. But apparently, Athens has also released one of its 'non-papers' to the media, explaining that they are also seeking "regulation' of debt" and the a35bn investment package promised by Jean-Claude Juncker.
@SpiegelPeter Gov nonpaper accompanying prior actions sez request to ESM incl 'regulation' of debt + a35-bn 'frontloaded investment package'
11.09pm BST
This - http://t.co/GKzYq0g4Zk - looks v similar to the 26th June draft plan. The one voted down in the referendum.
Basically: Syriza get presented with 26th June plan, call referendum, win referendum, Creditors hit back with "deal or Grexit", Greeks fold.
11.08pm BST
A round of applause for Greek newspaper Naftemporiki, who has uploaded the full proposal:
11.05pm BST
It does appear that Greece has, errr, compromised rather substantially:
New #Greece proposal appears to meet creditor demands for phasing out pension system's "solidarity grant" by 2019
With a quick read, new #Greece proposal appears to move closer to creditors on VAT & pension reforms. But was pre-June 30 creditor position
11.03pm BST
Hot out of Brussels, the Greek proposal is starting to leak.
And it shows that Greece is promising to hit the surplus targets demanded by its creditors, after months of resistance
Got copy of new #Greece proposal. Maintains primary surpluses at 1%, 2%, 3% & 3.5%, though 1st 3 years in parentheses
BREAKING: Greece offers sweeping sales tax hikes, pension cuts in new proposals to creditors.
* Greek reforms proposal to raise corporate tax in 2015 - RTRS
* Greek reforms proposal to increase tax on shipping companies - RTRS
* Greek reforms proposal to increase luxury tax and implement tax on TV adverts immediately - RTRS
* Greek reforms proposal ekas benefit to be gradually phased out for all pensioners by end December 2019 - RTRS
10.28pm BST
And finally (probably), the first reactions are already coming in from outraged leftists following news of the new measures, says Helena.
The communist party has called on supporters to attend a mass rally in Omonia Square at 7pm (5pm BST) on Friday to protest "the barbaric memorandum."
"Let's say NO to the barbaric memorandum."
10.09pm BST
Panic over! A signed copy of the Greek proposal has landed in Brussels.
Now received. Signed. Three institutions will now assess. #withJuncker
10.00pm BST
So what happens now? Over to Athens.....
Our correspondent Helena Smith has confirmed that the proposed reforms have indeed been sent to the country's creditors - and three hours AHEAD of the midnight deadline central European time.
9.40pm BST
Ah, there may be a hitch...
Signed letters are needed.
9.30pm BST
Eurogroup president Dijsselbloem's spokesman has confirmed that the Greek bailout plan has arrived!
New Greek proposals received by #Eurogroup president @J_Dijsselbloem, important for institutions to consider these in their assessment
8.51pm BST
Sounds like the Greek proposal has been fired across to Brussels; if so, that's AHEAD of the midnight deadline.
#Greece reforms' proposal sent to the Institutions and #Eurogroup's Dijsselbloem ~official
8.33pm BST
8.15pm BST
Here's our latest news story about tonight's developments:
The Greek government capitulated on Thursday to demands from its creditors for severe austerity measures in return for a modest debt write-off, raising hopes that a rescue deal could be signed at an emergency meeting of EU leaders on Sunday.
Athens is understood to have put forward a package of reforms and public spending cuts worth a13bn (9.3bn) to secure a third bailout from creditors that could raise $50bn and allow it to stay inside the currency union.
Related: Greece debt crisis: Athens accepts harsh austerity as bailout deal nears
8.02pm BST
A group of pro-EU demonstrators have gathered outside the Greek parliament tonight:
6.47pm BST
Friday will be busy....
Greek PM Tsipras has called a meeting of party lawmakers for 0600BST tomorrow (@RANsquawk)
6.29pm BST
International observers have been telling us today that the package is likely to be so punitive that humanitarian aid cannot be ruled out.
EU president Jean Claude Juncker had mentioned humanitarian aid as part of the "detailed Grexit scenario" plans creditors had drawn up. EU diplomats based in Athens said some form of assistance is likely to be given even if am agreement between Greece its creditors is reached.
6.21pm BST
We don't yet know the details of Greece's plan, but one report says there will be a13bn of fresh austerity. A heavy blow for the economy after years of recession, and the current banking shutdown.
#Greece reforms proposal foresees a13bn of fiscal measures and a50bn of requested loan ~source #ESM
6.11pm BST
The irony has not been lost on anyone - even though governing MPs are making light of it - that after the Greeks' resounding rejection of further biting austerity at the weekend, prime minister Alexis Tsipras has with lightning speed now agreed to put his name to the most punitive austerity package any government has been asked to implement during the five years of economic crisis in Greece.
6.05pm BST
Breaking news in Athens.
In an emergency meeting the Greek government has approved the package of measures it will present to creditors (hopefully later this evening) to break the impasse and reach an agreement, our correspondent Helena Smith reports.
4.25pm BST
Time for a recap
The Greek government is furiously scrambling to draw up a credible package of economic reforms to deliver to its creditors before midnight tonight, ahead of Sunday meetings that will decide its future in the eurozone.
The world waits for the #Greek proposals which have been penned here at the office of @atsipras #GreeceCrisis pic.twitter.com/eNxUCP9V7U
Realistic proposal from Athens needs to be matched by realistic proposal from creditors on debt sustainability to create win-win situation
No matter what. Help to #Greece no justification of wrong economic philosophy causing the crisis. "Magnum vectigal est parsimonia"
"Debt sustainability is not feasible without a haircut and I think the IMF is correct in saying that....
There cannot be a haircut because it would infringe the system of the European Union."
Schaeuble: "We could take Puerto Rico into euro if #US were willing to take #Greece into dollar. (Jack Lew) thought that was a joke" #uhm
By Monday morning, hopefully, it should be pretty clear whether or not Greece is staying in the euro area - at least for the next few months.
It seems very unlikely that over the next 72 hours the two sides will bridge the gap between Tsipras' desire for a debt write-down and the Europeans' reluctance to offer anything up-front without Greece actually implementing (as opposed to promising to implement) reforms.
* Euro zone finance ministers plan to start Eurogroup on Greece at 3pm cet (1300 gmt) Saturday to discuss Greek proposals - officials - RTRS
Sunday's #EuroSummit to start at 16.00, subsequent special meeting of the European Council to start at 18.00. #EUCO #Greece
3.53pm BST
European commission vice-president Valdis Dombrovskis has confirmed that Greece's lenders are working on a debt sustainability analysis, ready for the weekend.
Debt relief: EC is not interfering on IMF's work. Now we're working together with ECB & IMF on t debt sust analysis: @VDombrovskis #Greece
3.26pm BST
In Spain, a video is doing the rounds shows Greek prime minister Alexis Tsipras -- whether intentionally or not -- snubbing his Spanish anti-austerity ally, Podemos' Pablo Iglesias.
The video, shot as Tsipras visited the European parliament on Wednesday, shows the Syriza leader greeting politicians. As Iglesias puts his hand on Tsipras' shoulder and holds out his other hand, Tsipras instead turns to French MEP Jean-Luc Mi(C)lenchon.
"The circumstances are different and it makes no sense to draw parallels."
3.22pm BST
Mr Schiuble is in a witty moody today....
What? --> GERMAN FINANCE MINISTER SCHAEUBLE: OFFERED LEW TO TAKE PUERTO RICO IF US TAKES GREECE - MNI
#MichelSapin @Min_Finances and #Schiuble @BMF_Bund discussion finished, video follows at http://t.co/0d35dsGAa7 pic.twitter.com/LHbDfVA7jZ
3.18pm BST
Woah! Back in Frankfurt, Wolfgang Schiuble has said the IMF is correct that Greece needs a haircut make its debt sustainable; but alas this isn't possible under European rules.
GERMANY'S SCHAEUBLE SAYS DEBT SUSTAINABILITY IS NOT FEASIBLE WITHOUT A HAIRCUT, THINK THE IMF IS CORRECT IN SAYING THAT
- GERMANY'S SCHAEUBLE SAYS CANNOT BE A HAIRCUT BECAUSE IT WOULD INFRINGE SYSTEM OF EUROPEAN UNION so they are out
*SCHAEUBLE: LEEWAY FOR GREEK DEBT REPROFILING VERY SMALL
3.04pm BST
Spotted: Greece's new finance minister, Euclid Tsakalotos, chatting with his predecessor Yanis Varoufakis in the Athens parliament today.
2.59pm BST
French finance minister Michel Sapin has also weighed in on the Greek crisis.
Reuters has the details:
"Balanced budgetary strategies are necessary and efforts are needed to boost investment," Sapin told a conference in Frankfurt. "We must find the right balance between indispensable budgetary consideration and boosting growth."
Regarding Greece, Sapin said there was a need to rebuild confidence and trust to find a solution to the current crisis
#greece macron, valls, sapin, even god forbid hollande. nice to see the french standing up for a change #vivela...
2.57pm BST
Over in Frankfurt, German finance minister Wolfgang Schiuble called for the eurozone to be strengthened to avoid a repeat of the Greek crisis.
Schiuble warned:
"A monetary union constructed like ours is nothing but an invitation for somebody that doesn't stick to the rules and that's called moral hazard."
Schiuble says he hasn't seen any Greek prior actions yet, while everyone knows they are discussed now in Gr Cabinet & will be sent tonight.
2.38pm BST
For all its concern about Greece's debt sustainability, the IMF isn't planning to offer any relief itself.
Olivier Blanchard, its outgoing chief economist, has pointed out that poorer countries (Fund members themselves) haven't received the kind of treatment Athens is seeking:
Asked if #IMF should restructure its own #Greece loans, chief economist Blanchard says much poorer countries not been given such benefit
IMF's Blanchard: Greece's arrears "have implications". "We cannot just extend without a programme". Rules out IMF debt relief for Greece
2.29pm BST
2.10pm BST
2.07pm BST
Gloomy news from the IMF: They've just cut their global growth forecasts.
They now expect world GDP to rise by 3.3% this year, down from 3.5% back in April.
IMF Growth Forecasts From The World Economic Outlook: pic.twitter.com/1QRAAfSH4P
IMF cuts UK 2015 growth forecast to 2.4% from 2.7%
1.55pm BST
Angela Merkel has ruled out slashing the face value of Greece's government debt, during a visit to Bosnia today.
"In 2012 we dealt with the issue of debt sustainability. We stretched out the maturities, we pushed back the repayment requirement for EFSF loans out to 2020. So we are not dealing with debt sustainability for the first time," Merkel said when asked about differences with the International Monetary Fund (IMF) over a debt writedown for Greece.
"I have said that a classic haircut is out of the question for me and that hasn't changed between yesterday and today."
LOL ! ECB haircut guide (via @hellahueck) pic.twitter.com/9uZikgdNtN
1.46pm BST
Europe allowed the negotiations with Greece to drag on too long, says European Council president Donald Tusk in an interview published today.
Tusk told Dutch newspaper NRC Handelsblad that tougher limits should have been drawn from the beginning of negotiations, after Syriza won January's general election. Instead, the two sides talked for months, meaning Greece's second bailout expired on 30 June before a deal was reached.
@graemewearden For your liveblog, Tusk has done i/view with Dutch @nrc, saying EU should've drawn a clear line sooner http://t.co/n5IQUr168k
1.33pm BST
Connor Campbell, financial analyst at Spreadex, explains why European markets are rallying:
Reports have circulated this morning that the latest Greek plan could contain a12 billion in tax rises and cuts. Whilst this will be music to creditors' ears, or it will if relationships haven't been soured too much, this level of reform is more than the amount the Greek public rejected by voting 'no' in last weekend's referendum.
Tsipras remains stuck between the creditor rock and the Syriza/Greek public hard place, and if the a12 billion reform plan reports are true it's going to be a tough sell back at home, to put it mildly.
1.28pm BST
European stock markets are pushing higher, following Donald Tusk's warning to creditors that they must consider Greek debt sustainability.
The main indices are up over 2%, on hopes that a deal could come by Sunday.
Germany's DAX continues to surge. Now up nearly 2.3% pic.twitter.com/8R3BG6dBSO
1.07pm BST
Who voted No last Sunday? The Greek poor. And who voted yes? The wealthy.
And here's the proof, from my colleagues Achilleas Galatsidas and George Arnett. They've taken the voting data from last weekend's referendum, and mapped it against average income levels across Athens.
Wealthy suburbs in the north such as Kifisia voted definitively in favour of a deal with Greece's creditors. However, in some of the lower-income districts, particularly in the west of the city, the no vote was backed by the vast majority of residents.
This map shows how divided Athens was in the Greek referendum http://t.co/azvqmeLmeE pic.twitter.com/d1ubk9xl0M
12.41pm BST
Bad news for eurozone crisis watchers who fancied a quiet weekend - eurozone finance ministers will meet at 2pm BST (4pm Athens time) on Saturday to discuss Greece's proposals (once they're written):
* Euro zone finance ministers plan to start Eurogroup on Greece at 3pm cet (1300 gmt) Saturday to discuss Greek proposals - officials - RTRS
12.32pm BST
Political developments in Athens....
#Greece Cabinet council meeting in 30 minutes. Should make final decision on reform proposal. #GreeceCrisis
12.14pm BST
Donald Tusk's comments on debt sustainability could be an important development, following a double-whammy of pressure from America last night.
Yesterday, International Monetary Fund MD Christine Lagarde warned that Greece is now in "a situation of acute crisis"; reforms and a "debt restructuring" are both needed to escape it.
"In the next few days what we'll see is [whether] the parties come together and build enough trust that Greece will take the actions that it needs to take so that Europe will restructure the debt in a way that is more sustainable"
Related: IMF says Greece needs extra a60bn in funds and debt relief
Tusk blindsided everyone with that debt relief call, which echoes US and IMF. What on earth will Merkel make of it?
EU's Tusk follows Lagarde in saying any deal must involve 'realistic' proposal for handling Greek debt. Comments help Tsipras at home#Greece
11.50am BST
The EU has just announced the timings for Sunday's leaders' meetings on Greece:
Sunday's #EuroSummit to start at 16.00, subsequent special meeting of the European Council to start at 18.00. #EUCO #Greece
11.40am BST
Tusk has also tweeted that Greece's creditors must show how they would help Greece bring its debt pile down to a sustainable level:
Realistic proposal from Athens needs to be matched by realistic proposal from creditors on debt sustainability to create win-win situation
11.37am BST
While I was watching Donald Tusk, the European Commission was giving its morning briefing.
And it emerged that president Juncker will meet Greek opposition parties today:
Juncker to meet Greek opposition parties today and Friday, says @MargSchinas. #grexit @JunckerEU @tsipras_eu
New Democracy leader Evangelos Meimarakis met with Tsipras and four other party leaders on Monday, resulting in the issuing of a joint statement. However, the conservative said on Wednesday that he refused to hold another meeting in private with Tsipras and called on him to address Parliament.
Meimarakis said that he wanted Tsipras's comments to be officially recorded, which suggests that the New Democracy chief has become suspicious of the prime minister's motives. Meimarakis also decided to send ex-ministers Dora Bakoyannis and Costis Hatzidakis to Brussels for discussions with officials there.
11.20am BST
Luxembourg's PM, Xavier Bettel, says that he will speak with Tsipras later today to push him to deliver 'serious' proposals.
Luxembourg's Bettel, at presser with Tusk, says he'll call Tsipras today to urge 'serious' proposals
We have had months of goodwill. we now need proposals.
11.18am BST
Donald Tusk, EC president, says we have just three days to tackle the Greek crisis.
Speaking in Luxembourg, Tusk says that Greece remains the most pressing issue for Europe. We stand ready to do whatever is necessary to protect the stability of the euro area.
Otherwise we will continue the lethargic dance that we have been dancing for the last five months.
11.13am BST
Donald Tusk, president of the European Council is giving a press conference with Luxembourg's prime minister Xavier Bettel now, and discussing Greece.
It's being streamed live here.
11.11am BST
Francesco Papadia, former director general for market operations at the European Central Bank, has put his finger on the political challenges ahead:
Tsipras more than Merkel will have difficulty in having a decent agreement between #Greece and its creditors approved in Parliament.
10.55am BST
Ireland's finance minister, Michael Noonan, has an Irish radio that he believes Alexis Tsipras will manage to reach a deal to keep Greece in the eurozone.
The odds, he says, are over 50%.
Michael Noonan believes Greece has a "better than 50 percent" chance of getting a new bailout deal. pic.twitter.com/5qqH5ANftw
NOONAN SAYS TSIPRAS HAS A WINDOW OF OPPORTUNITY FOR DEAL *NOONAN SAYS THINKS TSIPRAS `WILL CARRY A DEAL'
Irish FinMin Noonan says 'seems like' #Greece working on conditionality; believes Tsipras 'will carry a deal'; 'very impressed' w Tsakali^2tos
Noonan in fine flying form on Greece....describes new fin min ``wealthy, impressive, marxist''
10.26am BST
There's no escape from deflation in Greece. Consumer prices fell by 2.2% annually in June, down from a 2.1% drop in May.
This month's figures will surely be even worse, given the imposition of capital controls at the end of June.
10.21am BST
Greece's jobless rate has dipped, but is still at depression-era levels.
The seasonally adjusted unemployment rate in April 2015 was 25.6%, according to Elstat, down from 25.8% in March 2015.
10.11am BST
Europe's stock markets are rallying this morning, partly due to hopes that the Greek government will meet tonight's deadline.
The French CAC and German DAX are both up over 1%.
Optimism is rising that Greece will deliver on promised proposals, both on time (today) and extensive enough (a12bn of reforms?), to allow creditors sign off on a third bailout for the beleaguered nation rather than its exit from the single currency.
Temporary respite or something more lasting? China stocks bounce back after days of panic selling among investors http://t.co/FudXYMP0x9
9.37am BST
Alexis Tsipras is now meeting with his top cabinet ministers to discuss the reform plans, according to local media
Meeting of #Grece PM #Tsipras w/ Dep PM @YDragasakis, FinMIn @tsakalotos, Econ Min @g_stathakis & FM @NikosKotzias underway (via @amna_news)
9.34am BST
Hold the optimism.
Greece's energy minister, the influential left-wing Panagiotis Lafazanis, has said today that he expects a deal soon - but won't accept a new bailout programme with tough austerity.
At conference in Athens, Energy Minister Lafazanis insists gov't will not sign new MoU, says #Greece has other options. #euro
#Greece EnergyMIn Lafazanis: We are not going to sign an MoU, we are not Europe's hostages
9.23am BST
Greek media are also reporting that Greece's reform plan could include a12bn of cuts and tax rises -- several billion euros than previously expected.
And that's because of the deterioration in the Greek economy, which plunged back into recession this year.
The report said that instead of growing by 0.5 percent this year, months of uncertainty and almost two weeks of capital controls meant "there are estimates of a recession of about 3 percent."
"It is estimated that the measures of 8 billion euros that Greece had presented for 2015 and 2016 will have to be increased by 2 billion euros per year, raising the total to 12 billion euros for the two years," Kathimerini reported.
Tsipras called #Grereferendum for a a8-9bln austerity package, now he is gonna have to implement about a12bln #result
9.17am BST
Greek media report team of French experts helping Athens prepare bailout plan. So that's how Valls knew it was good! (ht @robr1)
That's French PM Manuel Valls, who insisted yesterday that Greece must not leave the eurozone.
8.59am BST
Over in Athens insiders are saying that French help in drawing up the country's new reform proposal is proving invaluable.
"It is being done all over again, measure by measure. They are offering invaluable assistance."
"I am very optimistic for the first time in days."
8.49am BST
Greek pensioners have been queuing at bank branches today, to receive the maximum a120 they are entitled to under capital controls.
8.45am BST
#Greece FinMin Tsakali^2tos back in Athens. To meet with PM Tsipras this am to finalize Greek prior actions proposal to the #Eurogroup.
8.22am BST
There's no hope of buying or selling shares in Greek companies this week; it's just been announced that the stock market will remain closed until at least Monday night.
***Greece's capital markets commission says stock exchange will remain closed until July 13 inclusive - RTRS
8.19am BST
Mario Draghi, one of the crucial players in this drama, has warned that resolving the Greece crisis will be very tough.
"I don't know, this time it's really difficult."
Question to Draghi: "Will you manage to close the #Greece dossier?" Answer: "I don't know. This time it's really difficult". (@sole24ore)
"I don't see it as a real risk ... and then, they don't have money themselves."
8.03am BST
Good morning, and welcome to our rolling coverage of the Greek debt crisis.
"I am certain the agreement will pass Syriza's parliamentary group, [and] the governing coalition.
The government is doing everything it can to reach an immediate deal and end this cycle of uncertainty."
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