The Greek parliament has voted to approve the proposed terms for a third bailout. We're wrapping up our minute-by-minute coverage here, but you can still find the latest news on Greece on our website.
- Greek parliament approves government reform plan aimed at securing new bailout
- Creditors discuss proposals ahead of key meetings over the weekend
- French President Francois Hollande calls proposals "serious and credible"
- Greek proposals contain many elements rejected in referendum
- European stock markets rise following submission of proposals
Voting seems to be under way in parliament.
Greece's junior coalition partner, the Independent Greeks, will vote "with a heavy heart" to endorse government proposals submitted to creditors, party leader says.
It's the turn of Syriza's coalition partner, the Independent Greeks. Their leader Panos Kammenos says the government is being asked to approve "unconstitutional" measures. He says he doesn't fear Grexit, but the country being undefended - a reference to proposed defence spending cuts. It sounds as though he may oppose the bailout measures.
Now the leader of the other party opposed to a deal with Europe - Dimitris Koutsoubas of the Communist KKE - is saying that a third bailout deal would be disastrous for Greece. He accuses Syriza of opportunism.
The leader of Greece's far-right Golden Dawn party, Nikolaos Mihaloliakos, has told parliament his party won't support bailout proposals. But his impassioned speech was applauded only by a few of his own 17 deputies.
Greek opposition leader Vangelis Meimarakis of the centre-right New Democracy party accuses Mr Tsipras of having wasted time over reaching a bailout deal. Bring back a deal on Sunday, he says. But he pledges national unity.
Meanwhile, an EU source tells AFP that Greece's international creditors believe its latest debt proposals are positive enough to be the basis for a new bailout worth €74bn.
Mr Tsipras's address ends to applause, but no ovation, from MPs
Mr Tsipras is saying although he made mistakes, he wishes that "the seed of democracy and dignity we laid may bring hope to other European peoples".
For the first time we have a commitment to restructuring the debt, Mr Tsipras says. "This agreement is better on several points than the one presented to us as an ultimatum." But he admits to making mistakes.
PM Tsipras tells parliament that "referendum voters did not give us a mandate to break with Europe", Reuters reports. "I never asked for a 'no' to get out but as a way of strengthening our negotiating hand." He insists he is not selling out the Greek people by including many of the measures in the bailout proposal which voters in last Sunday's referendum apparently rejected.
- Copyright: EPA
Critics of austerity policies have said the IMF - one of Greece's creditors - bears some of the blame for this latest episode in the debt crisis. They accuse the lending body of dogmatism and a failure to learn from the past.
In a blog post, the IMF's chief economist, Olivier Blanchard, reviews the critics' arguments - and suggests the path ahead.Quote Message: Given the results of the referendum, and the mandate given to the Greek government, we believe that there may still be room for an agreement. It should be based on a set of policies close to those discussed before the referendum, amended to take into account that the government is now requesting a three-year program, and a more explicit recognition of the need for more financing and more debt relief... Fundamentally, the euro area faces a political choice: lower reforms and fiscal targets for Greece means a higher cost for the creditor countries
Apparently the joke was something to do with Angela Merkel knowing more about football than him
Mr Tsipras tells parliament in Athens that "we have been forced to take measures that were not in our programme".
Mr Tsakalotos said that whatever they gained from a bailout agreement will go to those on middle and lower incomes, Reuters adds. There is no triumphalism on the part of the Greek government, Mr Tsakalotos is quoted as saying - an agreement always has a cost. PM Tsipras is now speaking.
Several hours behind schedule, the parliamentary debate in Athens has finally begun. Finance Minister Euclid Tsakalotos said the referendum had changed political realities on the ground in Greece and led to better negotiations, Reuters reports. He said that government did not introduce more recessionary measures into the package despite pressures from the IMF and Germany
- Copyright: Reuters
Of course, not everyone agrees that Greece should even have to pay back its debt. Some have set up a petition website - Cancel Greek Debt. They point out that less than 10% of bailout funds actually went to the Greek people - with the vast majority of the money used to repay creditors. And they make the point that has been doing the rounds on the web in recent days - that Germany itself enjoyed hefty debt relief in the 1950s.
Need a reminder of who's got most to lose if Greece can't pay back its debts? This table - from a story on trove.com - lists country creditors - beginning of course with Germany and France.Copyright: Deutsche Bank via trove.com
But don't forget that the debt makes up a larger proportion of national GDP for smaller countries, such as Slovakia and Malta. Here's a table putting the figures in that context, from the Guardian.Copyright: The Guardian
US stocks have reacted positively to events in Greece, closing up either 1.2% or 1.5% - mirroring rises in European and Chinese stock markets.
Still no sign of that vote in the Greek parliament - some reports in Greece say it may happen after the debate at about midnight local time - that's in about an hour's time.
That is not a promise, though.
Greece's biggest pornography producer, Dimitris Sirinakis, has announced that all porn on his Sirina channel will be free until an agreement is reached with Europe, our business reporter Joe Miller informs us.
Do not expect any more updates on this.
- Quote Message: The new Greek government proposals... are clearly based on those submitted by [European Commission President] Jean-Claude Juncker last Thursday, before the referendum. It’s left many Greeks frustrated, asking: what was the point of the referendum?
Channel 4 economics editor Paul Mason explores this question in his latest blog post.
The Guardian has just published an article written by Yanis Varoufakis, Greece's former finance minister, who continues to gain publicity even after leaving his job earlier this week.
In it, Mr Varoufakis reserves the worst of his criticism for the German finance minister, Wolfgang Schaeuble.
He writes:Quote Message: Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.
The anti-austerity demonstration in Athens, led by the Communist Party, has now ended - here are a few more images from earlier this evening.Copyright: ReutersCopyright: AFP/Getty ImagesCopyright: AFP/Getty Images
BBC News, Athens
We're expecting the parliamentary debate to start any minute now. Prime Minister Alexis Tsipras has been busy building parliamentary support in various parliamentary committees.
- Copyright: AFP/Getty Images
Bloomberg are reporting there might be a buyer for Greece's two biggest ports.
The sale of Piraeus and Thessaloniki ports is among the proposals made by Greece in its latest offer to its creditors.
Bloomberg says the Danish conglomerate AP Moeller-Maersk is keen on a purchase, quoting one of the company's vice-presidents.
The Greek newspaper Enikos has images of the former finance minister Yanis Varoufakis purportedly travelling on a boat on his way to his holiday home on the island of Aegina.
At the same time, his colleagues in parliament are voting on Greece's future, but Mr Varoufakis wrote to the head of parliament earlier to see he would not be attending the vote "for family reasons".
He earlier said he supports the proposals for reform his party, Syriza, are putting forward.
Reuters reports that Greek banks will need between €10bn ($11bn; £7bn) and €14bn in fresh capital before they re-open next week.
Banks are scheduled to open again on Monday after staying closed for two weeks. A senior banker told Reuters the money would be needed even if a deal is reached with Greece's creditors.
Since last week, withdrawals have been capped at €60 a day.
"Liquidity is assured at the daily €60 withdrawal limit until Monday night," a senior Greek banker told Reuters. "There is a cushion of about €750m until then."
Here's a graphic showing the make-up of the Greek parliament, which is due to vote on the government's new proposals to secure a bailout later on Friday evening. (Ignore the inner rainbow, which shows the previous administration.)
Prime Minister Alexis Tsipras' coalition holds 162 out of 300 seats (and the Left Platform bloc within Syriza, which had threatened to oppose the measures, is now reportedly saying it will pass them).Copyright: BBC
The only opposition parties to have pledged opposition to the measures are the KKE and far-right Golden Dawn, with 32 seats between them. So it seems likely they will pass tonight - but let's see.
The Wall Street Journal's Matina Stevis just tweeted this picture of the rally by the Greek Communist party, the KKE, who are opposing the government's proposals.
Yannis Koutsomitis, a Greek analyst, tweets that Syriza's far-left platform - who said earlier they were opposed to any deal demanding more austerity - will now vote for the agreement tonight.
If so, it would mean all - or almost all - of Alexis Tsipras' party will be behind him in parliament, and would help safeguard his job.
Struggling to distinguish the ECB from the ELA, and the Grexit from the Greferendum? Our guide to Greek debt jargon is for you.
Our Europe editor Katya Adler has written about Greece's prospects . Her verdict? No one knows whether a deal will be reached this weekend. But:Quote Message: Continuing austerity is inevitable. The Greek prime minister, on an incredible high last Sunday after receiving an overwhelming vote of confidence in the country's referendum, can now only disappoint the Greek people.
Despite the capital controls, the Greek banks are "leaking cash at a rate of more than €100m a day", says the Financial Times. It quotes senior bank executives as saying that Greek lenders will face bankruptcy on Monday if there is no deal struck with creditors over the weekend.
"As Greece's crisis has deepened, its banks have emerged as the chief vulnerability that could soon force the country to leave the single currency," the newspaper warns.
The war of words over what was really responsible for Greece's economic woes continues. In the New York Times, Nobel Prize winning economist Paul Krugman argues that Greece - its hands tied as a member of the eurozone - was unable in recent years to tackle its ballooning debt crisis by lowering interest rates (and encouraging private spending) or allowing its currency to depreciate (and encouraging exports).Quote Message: Greece’s formula for disaster, in other words, didn’t just involve austerity; it involved the toxic combination of austerity with hard money.
And he goes on to make a domestic political point:Quote Message: So who wants to impose that kind of toxic policy mix on America? The answer is, most of the Republican Party.
Another Syriza MP will vote against the deal, it has now been reported.
Greece's Kathimerini newspaper says the latest dissenting voice is Rachel Makri, a deputy with the party who joined from the Independent Greeks group before January's elections.
As we wrote at 13:49, another five Syriza MPs wrote a statement calling on the government to issue an anti-austerity ultimatum.
A Metron Analysis poll quoted by Reuters suggests 55% of Greeks now believe it was right to vote 'No' in last Sunday's referendum (compared to 61% who voted 'No' at the time).
If there were parliamentary elections, 45.6% of Greeks would vote for Syriza, the poll indicates. And it confirms strong support for keeping the euro - 84% in favour against 12% who would prefer to return to the drachma.
The turmoil has prompted many Greek professionals to mull - in hushed tones - whether they should quit the country, reports the Economist.
They'd be joining the thousands who have already gone.Copyright: The Economist.com
With little prospect of job security, decent pay or a chance to build a career in their home country, who can blame them, the Economist asks.
- Copyright: Reuters
What will happen if a deal for a new Greek aid programme is agreed by eurozone finance ministers and leaders this weekend?
Well, the talks still won't be over.
AFP says a deal would have to be approved by at least eight different parliaments - and Germany's (above) would vote twice.
The parliaments of Belgium, Luxembourg, Cyprus, Lithuania, Italy, Spain, Portugal and - probably - Malta or Slovenia wouldn't vote on the deal.
Greece's former finance minister, Yanis Varoufakis, says in a letter posted on his Twitter account that he supports the proposals for reform being put to creditors.
His tweet reads: "Tomorrow Euclid [Tsakalotos, the new finance minister] deserves the support of us all. He has mine in full. Then we will assess the outcome."
His backing may puzzle those who remember his description, upon his resignation, of the bailout proposals rejected by Greeks last Sunday as "debt bondage". Many of the same elements are in the current proposals.
A rift between the Greek private media and the government led by the left-wing Syriza party has escalated after a journalists' professional body put nine senior journalists from three channels - Mega, ANT1 and Skai TV - under investigation over their coverage of the 5 July Eurogroup bailout referendum, reports BBC Monitoring.
They are facing accusations of breaking the electoral law and of bias in favour of the 'Yes' campaign.
The public prosecutor has also announced an investigation over allegations of "spreading false information" and "attempting to alarm the public", after formal complaints from citizens, Monitoring says.
Syriza had cried foul over media coverage, which it said "offends any sense of elementary fairness and journalistic ethics" - despite the resounding win of the 'No' campaign.
- Copyright: Reuters
As the new Greek proposals are mulled over, Greeks get in line once again to wait for cash. Here, a pensioner joins the queue in Thessaloniki. Banks are due to remain shut until at least Monday.
BBC News, Athens
What a difference five days make... Proposals very similar to these were rejected by 60% to 40% last Sunday - and some say these are even more austere.
The chances are, however, that Prime Minister Alexis Tsipras will get them through Friday night's parliamentary vote, but with the help of the opposition - several of his own members will not support them. At the moment many MPs are in parliamentary committees.
- Copyright: Reuters
Lithuanian President Dalia Grybauskaite has poured cold water on Greece's new proposals, saying they are based on "outdated information".
"It seems those proposals will really not be enough," Reuters quoted her telling reporters. "We take the document of proposals as [indicating] Greece's wish to go back to the negotiating table. It's too early to start guessing how the negotiations will end."
And even in Britain and France, there is by no means a consensus that Greece's debt should be reduced and renegotiated, YouGov suggests.Copyright: YouGov
- Copyright: YouGov
British and French people are much more sympathetic to Greece's plight than those in Germany or the Nordic states, YouGov polling suggests. Only 33% of French respondents blamed past or present Greek governments for the crisis compared to 73% in Finland, which is owed the equivalent of 10% of its annual budget by Greece.
But be wary of translating that into sympathy for the demands of Greece's Alexis Tsipras,says YouGov.
But despite the rallying European stock markets, many financial analysts remain cautious about the prospects of a genuine resolution to Greece's troubles - with strategists at Societe Generale SA still estimating that there is a a 65% chance of Grexit, reports Bloomberg Business.
The FTSE 100 has so far on Friday ridden high on the news of the new bailout plans from Greece and another day of relative recovery on Chinese markets. Catch up with the markets with BBC Business.
- Copyright: AFP
Could the virtual currency Bitcoin help Greeks overcome currency controls? Athens is getting a Bitcoin ATM machine at the weekend from Spanish company Bitchain. The move was planned before the current closure of the banks but it allows those with Bitcoins to take out €1,000 - well over the €60 limit placed on regular withdrawals for Greeks. Bitchain argues that Greeks could change their euros into Bitcoins - potentially protecting themselves against currency devaluation in the case of a "Grexit".
We've done a video guide explaining the pros and cons of using Bitcoin in Greece. Should Greeks turn to Bitcoin for saving?
Yanis Varoufakis, who resigned this week as Greek finance minister, tweets that he cannot be in parliament for the vote this evening for "family reasons" but that he fully supports his successor Euclid Tsakalotos.
Greece's main opposition conservative party, New Democracy, has given its backing to Alexis Tsipras's proposals for a third bailout. In a statement, the party said it gave the prime minister "not only the authorisation to reach an agreement, but also the mandate to avoid the country's exit from Europe and the euro".
Greece has not turned to Russia for help with its debt problems, Russian President Vladimir Putin has said. He told a news conference in the Russian city of Ufa that he hoped the issue would soon be resolved and, in an apparent dig at Europe, he asked "where was the EU" when Greece's debt problems were mounting, Reuters reports.
US Treasury Secretary Jack Lew says deal appears to be closer, Reuters reports, but that US economy should not experience "huge turbulence" it talks do go badly.
The IMF chief economist Olivier Blanchard has hit back at several criticisms of the organisation for its handling of the Greek debt crisis. In particular, on whether austerity measures had damaged Greece, he says:Quote Message: Given the dismal productivity growth record of Greece before the programme, a number of structural reforms were seen as necessary, ranging from a reform of the tax administration, to reduced barriers to entry in many professions, to reforms of pensions, to reforms of collective bargaining, to reforms of the judicial system, etcCopyright: EPA
The New York Times has taken a look at whether Greece is worse off now than the US during the Great Depression.Copyright: NYTCopyright: NYT
The answer? Read the full piece here.
- Copyright: Reuters
Greece will sell €625m worth of three-month bonds on 15 July to refinance maturing sovereign debt, the country's debt agency said. It will be Greece's second borrowings roll-over this month. Athens successfully rolled over six-month debts earlier this week, managing to keep its public finances afloat.
Greece's Deputy Culture Minister Nikos Xydakis has spoken about the challenge of reaching a deal that satisfies everyone, and taken a swipe at Germany in the process.Quote Message: These are tough dilemmas; we have to face an intransigent Germany, which is not willing to discuss what the rest of the world discusses. We must take into account the long-term national interests. We have to take time in order to regroup. Europe will not be the same from now on; however our historical and geopolitical borders are within Europe.
These are the five Syriza politicans behind that statement, according to Greek media: Leoutsakos, Ntavanelos, Papadogianni, Lapavitsas, Petrakos.
What about Varoufakis, asks journalist Jerome Roos. It is hard to imagine this deal won't stick in the craw of the firebrand former finance minister.
- Copyright: BBC
Artemis works at Doctors of the World, a Greek charity that provides emergency healthcare to refugees and those without medical insurance. In the past weeks, supplies have dried up, she told the BBC.
"We are without food, without medicines, without vaccinations," she said.
The UN refugee agency says Greece needs urgent help from the European Union in order to cope with the growing number of migrants.
Five Syriza hardliners have signed a statement calling on the government to issue an anti-austerity ultimatum, Greek TV is reporting.
The three MPs and two members of the party's political committee - as yet unnamed - said:
"The government even at this hour can and should respond to the institutions' blackmail with the dilemma: either a programme without new austerity, with funding and a debt write-off, or an exit from the euro and suspension of payments of the unjust and non viable debt."
Proposals submitted yesterday by the Greek government make considerable concessions to the country's creditors in the hope of securing a €53.5 billion bailout.
- Copyright: AFP
We reported earlier that Italy's PM Matteo Renzi said he hoped a deal on Greece's bailout may be reached on Saturday, making it unnecessary for leaders to attend an emergency summit on Sunday. He also had this to say on the future of Europe:Quote Message: The real question now is what type of Europe you can build. This is the question. It's absolutely crucial to save Greece in respect of international laws, but at the same time I think we must imagine a Europe for the next generation.
While there has been a mostly favourable response to the latest Greek proposals, not everyone is impressed. The joint chief executive of the Berlin Stock Exchange, Artur Fischer, told BBC World Germany had no reason to trust Greece's intentions.Quote Message: The Greek government has acted like financial Taliban over the last half year, and lost all credibility, so the question really I believe for the German parliament is, are we going to discuss this whole thing again in, what, six months time, twelve months time? Are they going to stick to their proposal, yes or no - because if they don't, then Angela Merkel will have a huge problem.
Slovakia's Finance Minister Peter Kazimir has injected a little colour into proceedings.
Despite the apparent doubt over the speed with which Greece can morph into a stable economy, Mr Kazimir seemed cautiously optimistic that things are moving in the right direction.
Radical Syriza MP (and professor of economics) Costas Lapavitsas said Greece will have to face up to a Grexit at some point even if a deal is done this weekend, according to Greece's Kathimerini.
And Syriza's Labour minister Panos Skourletis reportedly said capitulation was "inevitable".
Greek Centrist Party To Potami says it will back the government's bailout reforms package. "Certainly we will authorise the prime minister to bring a deal," spokesman Dimitris Tsiodras told Reuters news agency.
The BBC's Mark Lowen in Athens says that, no matter how it is packaged up, whatever the positive spin, Mr Tsipras has made a major climbdown.Quote Message: So what was the point in the referendum? To some extent it's a Greek pride issue, that this nation revelled in standing up to orders. But also, senior Syriza figures tell me, it won time to get the party on board and strengthened the prime minister's hand to implement the measures. It has, though, come at a huge cost: closed banks, a return to recession and bad blood with the EU. The proposals are likely to pass through parliament, but criticism at home will grow.
Greece's chances of staying in the euro have had votes of confidence of various sorts this morning, from presidents, prime ministers, and the international money markets.
Now the bookies are moving in their favour. Ladbrokes has lengthened its odds on a Grexit from 11/8 to 3/1.
"The betting markets are giving Greece a hefty vote of confidence going into the weekend's negotiations," said Alex Donohue of Ladbrokes.
The odds on Grexit at Paddy Power lengthened to 23/10, from 11/8 yesterday.
If you fancy a flutter, William Hill is offering the longest odds of the major bookmakers at 10/3.
We've just published a new debt crisis main story. Catch up on all of today's developments here:Copyright: AP
This morning's uptick on European stock markets signifies faith from investors that Greece's latest bailout proposals are agreeable, writes BBC economics correspondent Andrew Walker.Quote Message: The financial markets in Europe have been pushed up and down by rising and now receding concerns that Greece might be on the brink of leaving the Eurozone. That possibility also fed fears of contagion to other vulnerable economies that use the currency - such as Spain and Portugal. The latest proposals from Athens are sufficiently similar to creditor demands that investors think there is a good chance that Greece will reach an agreement.
See our latest story: Eurogroup says new plan 'thorough'
The BBC's Jasmine Coleman has been travelling around Greece to find out what life is like for people living through these uncertain times.
Today she describes how for many older Greeks, the debt crisis has triggered uncomfortable memories of World War Two and the years of occupation
Just as Greece's creditors are divided over whether it should remain in the euro, so are its people.
The pro-European contingent staged a demonstration outside the Greek parliament in Athens yesterday.
Here are some of the best images.Copyright: AFPCopyright: AFPCopyright: AFP
Useful graphic here from the Royal Bank of Scotland assessing where the eurozone nations and institutions stand on a Grexit.
The "mood has turned" in favour of Greece, tweets Die Welt's Holger Zschaepitz, with RBS now seeing a deal as likely.
- Copyright: Reuters
French President Francois Hollande has spoken again and acknowledged that the people of Greece "have suffered a lot for years".Quote Message: So the discussions now need to re-engage - but must resume with a will to reach a conclusion. Such is the approach of France: to do all we can to reach an agreement ... respectful of European rules because we are together, respectful too of the Greeks because they have suffered a lot for years.
French public opinion is considerably more sympathetic to the plight of Greece than some of Greece's other eurozone creditors.
Germany will not comment on Greek proposals for a fresh bailout plan until creditors have offered their judgement, according to government spokesman Steffen Seibert.
"We will wait until the institutions examine them and express their opinion," he said, referring to the European Commission, European Central Bank and the International Monetary Fund.
Greece's hardline left-wing energy minister Panagiotis Lafazanis has been a key opponent within Syriza to any deal involving harsh austerity measures, but he could have found some accommodation, judging by this image of him emerging from discussions with a thumb thrust distinctly upwards.
There were rumours this morning that Mr Lafazanis was set to resign over the proposals.
Watch this space...
Italy's Prime Minister Matteo Renzi says he is "more optimistic than before" about a deal, following Greece's submission of new bailout proposals.
Eurozone economy ministers are due to meet on Saturday to discuss the proposals, ahead of a full meeting of EU leaders, including Mr Renzi, on Sunday.
"Let's hope we don't have to see each other again on Sunday because that will mean that the deal has already been done on Saturday by our economy ministers," Mr Renzi told Ireland's PM Enda Kenny at a joint news conference.
Familiar scenes in Athens as pensioners queue to withdraw their maximum weekly allowance of €120.
At the National Bank of Greece, outstretched arms reach for the queue numbers handed out by an employee.Copyright: AP
Greece's parliamentary committee will begin examining the bailout proposals at 15:00 local time (12:00 GMT) and begin voting at 19:00 local, reports Kathimerini's Niki Kitsantonis.
The vote could go "very very late", she writes.
Greek PM Alexis Tsipras has appealed to his Syriza party colleagues to support the government's bailout proposals, reports Greece's Kathimerini.
"We have a mandate to bring a better deal than the ultimatum that the Eurogroup gave us, we do not have a mandate to take Greece out of the eurozone," Mr Tsipras was quoted as saying at a meeting of his parliamentary group this morning.
"Either we'll carry on all together or we will all fall together."
Greece's creditors are set to discuss Athens' new bailout proposals by teleconference at 11:00 GMT, EU sources told Reuters.
The conference will involve European Commission President Jean-Claude Juncker, European Central Bank President Mario Draghi, International Monetary Fund chief Christine Lagarde and Eurogroup finance ministers' chairman Jeroen Dijsselbloem.
- Copyright: Reuters
Dutch finance minister and Eurogroup chairman Jeroen Dijsselbloem has just said a "major decision" could be taken by eurozone finance ministers when the group meets for an emergency session on Saturday.
Speaking ahead of a meeting with the Dutch government, Mr Dijsselbloem declined to go into detail but called Greece's latest proposals "a thorough piece of text."
The pressures on Greece are obvious but there are also pressures on the rest of the eurozone - both economic and political - says the BBC's Chris Morris from Brussels.Quote Message: In the end ... this is about the politics of European integration. There is a lot of talk of solidarity in the EU. Developments in Greece over the next few days will determine whether all the talk adds up to much. Because the euro is not just an economic project; it is a political one. The single currency has become the most important symbol of the European Union.
Read the full blog: Eurozone under pressure
The euro rallied in early trading off the back of Greece's reform proposals, up 0.65% against the dollar.
European stock markets were up, the German DAX index rose 1.6% and France's CAC in Paris jumped 2.7%.
The FTSE 100 was up 1%.Copyright: BBC
Greeks read the morning papers in Athens as they await Europe's response to the new bailout proposals.Copyright: EPA
BBC economics correspondent Duncan Weldon has some useful analysis of the contents of the Greek offer and how it might play out.
If you're not following Duncan on Twitter, you can find him here, along with tweets 4 to 10.
French President Francois Hollande said this morning the latest proposals from Athens are "serious" and "credible".
"The coming hours will be important," he said, adding that "nothing is decided yet".
- Copyright: Reuters
The 11th-hour reform proposals submitted to Greece's European creditors last night are "very familiar", writes the BBC's economics editor Robert Peston.Quote Message: That familiarity stems from its great similarity to the bailout proposals put to Greece by the creditors - the eurozone governments, the European Central Bank and the IMF - last month. Pretty much everything wanted by the creditors is there - with the odd tweak or softening, but nothing which looks as though it ought to be noxious to them.
He goes on...Quote Message: Only a few days ago the Greek prime minister Alexis Tsipras won an overwhelming mandate from the Greek people, in a referendum, to reject more-or-less these bailout terms. And today, on the back of that popular vote, he is signing up to the supposedly hated bailout. This is big politics that would make Lewis Carroll proud.
The proposals are a "capitulation", he says.
Read the full post here: Athens capitulates to creditors
According to Greek media reports, the measures submitted include:
- tax rise on shipping companies
- unifying VAT rates at standard 23%, including restaurants and catering
- phasing out solidarity grant for pensioners by 2019
- €300m ($332m; £216m) defence spending cuts by 2016
- privatisation of ports and sell-off of remaining shares in telecoms giant OTE
- scrapping 30% tax break for wealthiest islands
Correspondents say the plan contains many elements rejected in a referendum last Sunday.
Welcome to the BBC's coverage of the Greek debt crisis. Prime Minister Alexis Tsipras is seeking the support of the Greek parliament to negotiate a third bailout with international creditors. The Greek government met a Thursday deadline to submit detailed plans which are now being examined by eurozone officials - ahead of an EU summit on Sunday.