Greek debt crisis live: EU leaders' summit cancelled as finance minsters say 'it is not possible' to do deal today

Eurogroup leaders are resuming talks to decide whether to accept Greece's final proposals for a bailout deal. If a deal is not struck, Greek banks could run out of money and the country could be forced to leave the euro.

 

It's all smiles between Greek PM Alexis Tsipras and French President Francois Hollande - France has shown itself to be an ally of Greece in the last few days, determined to keep it in the Euro. Meanwhile, Germany isn't quite as committed to preventing Grexit (although obviously, keeping Greece in Europe is the aim of today's meetings).

Eurozone leaders, during a day of constant talks, are pushing for Greece to put fiscal reforms into law by 15 July. As it stands, and despite the 'No' vote to austerity in last week's referendum, many of the proposed reforms are the opposite of what the Greek people voted for - increased sales taxes, "ambitious" pension reforms, and stricter strike laws, amongst other things.

 

Francois Hollande, the French president, appears to have ruled out Germany's 'temporary Grexit' proposal.

"France will do everything to find a deal tonight, allowing Greece, if the conditions are met, to remain in the euro zone and allowing Europe to progress," he said.

an hour ago

Angela Merkel, the German Chancellor warns there are tough talks ahead and there will be "no agreement at any price".

"I know nerves are on edge but we must be sure that the advantages outweigh the disadvantages, both for the future of Greece and for the euro zone as a whole and the principles of our cooperation," she said.

"That means that this evening we will check whether the conditions are present for us to launch negotiations on an ESM programme for Greece. That's what this is about, nothing more and nothing less. But whether or not we will succeed, we'll have to see."

But Finnish Prime Minister Juha Sipila remains sceptical, and says the decision on Grexit “will not come today”. 

He said: “Let's see what the result is in the Eurogroup and the leaders' summit. It is clear that the basis is too shaky to go forward.”

“Finland's stance is not necessarily the strictest.”

“The decision on Grexit will not come today. Today we will define the path on which we will go forward. But a lot has to happen before there is credible basis (for Greece) to return to the markets.”

2 hours ago

Greek Prime Minister Alexis Tsipras says he's ready for a compromise deal with European creditors and that an agreement later Sunday is possible if “all parties want it.” 

Arriving for an emergency meeting of the 19 leaders of the eurozone in Brussels, Tsipras said Europeans want to see Europe “united and not divided,” AP reports. 

Ties between Greece and Russia appear to have strengthened after Putin’s energy minister Alexander Novak said today that the country would expand co-operation in the energy sector.

In a statement sent to reporters, Novak said Russia was considering the possibility of organising direct energy supplies to Greece and hoped to reach an agreement within the next few weeks. 

As the debt talks continue in Brussels, Greeks in Athens continue to go about their business. 

A man waits for a bus in Athens  

A man reads the headlines this morning  

A family attend a church service  

Though many countries are determined to prevent Greece from leaving Europe, Dutch Prime Minister Mark Rutte will not rule out the possibility:

“For the Netherlands, the only way to open to help is if the Greeks re ready to take all the necessary measures to ensure that the Greek economy can stand on its own feet.”

He added: “If finally there is no agreement over negotiating an ESM programme then it [Grexit] could be the result."