Just one more point.... Back in Athens the spectre of dissent possibly disrupting any agreement has already begun.

On leading Syriza party MP predicting that the Greek government’s proposals will never get through parliament, reports Helena Smith

Leading Syriza party cadre Alexis Mitropoulos, who is also vice president of the 300-seat House, has spoken out against the government’s proposed reforms telling STAR TV this evening:

“My personal view is that these measures cannot be voted, they are extreme and anti-social. I believe that in the end, this package which you have at hand, cannot come to the Greek parliament.”

We’ll be watching for more political reaction in the morning.....(or later in the morning, if you’re reading in most of Europe)

Add that’s probably all for tonight - I’ll be back tomorrow morning for full coverage of another day of Greek drama. Goodnight, and thanks for all those comments. GW

Tsipras also told the press pack that Greece’s proposals have been accepted as the basis of a possible deal by its creditors (as Francois Hollande also said tonight).

And he’s echoed his own words when he arrived in Brussels 13 hour ago to be playfully cuffed by Juncker: -- Greece is seeking a “comprehensive” and sustainable solution that will be accompanied by a growth package.

The Greek delegation are listening to their leader too (there’s Yanis Varoufakis in the middle of the photo)

Aha: there’s Alexis Tsipras, briefing the press right now.

As the clock strikes midnight in Brussels, and 1am in Athens, thoughts are turning to bed.

But we’re not done yet.....we’ve still to hear from Alexis Tsipras.

Meanwhile in Athens....

EU officials are briefing that the two sides are really quite close now.....

Across the summit, Francois Hollande has given Greece some support.

The French President told reporters that “everything must be done for Greece to stay in the euro”, and that their proposal was “received positively” by its creditors.

We have the basis (or possibly the bases?) for a deal, he adds.

What discussions did eurozone leaders have about capital controls?

Capital controls were not mentioned tonight, Juncker replies.

(reminder, we understand that eurozone finance ministers discussed the issue during their meeting earlier today)

Are Greece’s creditors worried that the latest proposals will have a recessionary impact?

That is an issue we can look at now, Juncker replies.

Onto questions.... was there any discussion on debt relief for Greece?

This is not the time to discuss that issue, Juncker replies

Juncker then says a few words -- the Eurogroup will meet again on Wednesday, he says, and he’s confident that they will produce results for Thursday’s summit.

And thenhe states that “We will finalise the process this week”.

Donald Tuck and Jean-Claude Juncker are arriving in the press room NOW

Christine Lagarde has apparently left the summit too, telling reporters that “we have a huge amount of work to do on Greece” in the next 48 hours.

Ah....Angela Merkel is also due to give a press conference, which should be streamed online here.

Italy’s Matteo Renzi has made a quick exit from the summit,....

Dalia Grybauskaitė , president of Lithuania, has left the summit - and warned that the next 48 hours are “absolutely crucial”.

Today we were mainly persuading the Greek government to use our experiences and perform what is necessary, she says.

So you’re not impressed by the Greek proposals?

Not yet.

That’s not as provocative as her quotes arriving at the summit:

Phew

Like an smouldering fire, the eurozone summit appears to have sprung back into life again. At least, there’s no sign of anyone leaving the event (which must be irksome for those haven’t enjoyed a spot of roast beef and parfait tonight)

The early reaction to the Greek government’s latest set of proposals from the eurocrisis crowd isn’t terribly positive:

Let’s not pretend that Tsipras and his colleagues want to make these sort of cuts and tax hikes, though; they just appear to be losing the battle over these issues.

I’m hoping that eurozone leaders will speak to the media, now that the emergency summit has finished. If so, it should be streamed live on EbS (but no promises).

Surely Alexis Tsipras will say something interesting?

Greece’s finance minister hasn’t lost his knack at social media, after being challenged on Twitter tonight by Guy Verhofstadt, the senior Liberal MEP and former Belgian PM.

As flagged up earlier, Greece is also now proposing to charge a higher VAT rate on many products; it’s not going to be popular.....

The Greek government has released one of its famous non-papers outlining in detail the proposed reforms it has made to creditors today, reports Helena.

Right off the bat (as point no 1) the leftist-led administration says:

“The government’s proposal is NOT part of its programme. It is the result of hard and persistent negotiations in order to get to an agreement that wouldn’t harm workers’ rights, further dissolve the social fabric and which would allow growth.

[It is] A proposal that does not doom the country to harsh austerity and which encompasses a viable solution for the Greek economy, without burdening those on lower and mid-sized incomes.”

Prolonging the uncertainty by extending the country’s current bailout accord was not on the cards, the statement said.

Whatever happened, creditors had to address the issue of Greece’s debt and Athens’ need for financing, in the mid-term, to “end the vicious circle of uncertainty so that the country is not forced to constantly take new loans in order to pay previous loans.”

Word from Brussels: the Greek summit appears to be wrapping up.....

Angelique has also written about how the Greek population has become immune to eurozone panic fever, after years of austerity and depression:

As the “last-chance” talks rolled on towards another “last-ditch” summit possibly at the end of this week, weary Greeks have deadline fatigue.

“Unfortunately, we’ve become hardened and accustomed to all this, including the never-ending talks,” said Christos Griogoriades, a physics and IT teacher in Greece’s northern second city of Thessaloniki.

Panic about so-called “knife-edge”, “life-or-death” negotiations has become so commonplace that it is almost meaningless to a population whose major concerns are still making ends meet and scrimping for enough to eat.....

A Greek government official has told Reuters tonight that Mario Draghi assured Alexis Tsipras that he’ll keep supporting the banking sector, as long as Greece is in a bailout programme.

The current bailout expires on June 30, of course, when Greece also owes €1.6bn to the IMF.

Over in Athens Helena Smith says tonight’s rally outside the Greek parliament is further proof of the growing divide now emerging between pro-European and anti-European camps in Greece.

Demonstrators spoke of a “civil war” atmosphere between the two camps.

“Before, the divide was between the pro-memorandum and anti-memorandum camps,” said Lefteris Pappas, a business consultant standing in Syntagma square.

“Now it is between those who believe our future is in Europe and those who want to split from the EU and its a divide that is becoming ever more extreme. There is a lot of abuse in the social media, on Twitter and Facebook, [between the two]. They’ve even harked back to the second world war and called us German collaborators because we believe in reform, we agree with a lot of what the creditors are telling us to do.”

Yannis Sviroyeras, a retired entrepreneur, said he believed the growing chasm was being deliberately cultivated by the government.

“They are Bolsheviks, they’re Stalinists, they’ve Trotskyists, they’ve got mad ideas about us aligning with Russia. What I worry about is violence. Imagine if the two of us [both camps] want to demonstrate in Syntagma Square - and that day may come soon. It would be difficult not to come to blows.”

The letter which Alexis Tsipras sent to Jean-Claude Juncker to explain Greece’s new proposals has also leaked, and shows Athens is adamant that it is meeting its creditors demands:

Sky’s Ed Conway has also got hold of the latest Greek proposals:

No white smoke from Brussels yet.....

Just in: photos showing Angela Merkel and Francois Hollande having an intense chat in the corridors of Brussels, after a bilateral meeting this afternoon:

The Irish government, which has maintained a hard line on Syriza by insisting Greece must stick to the conditions of its bailout programme, seems to have been persuaded that a deal is viable.

Enda Kenny, the Taoiseach, told RTE and Channel 4 News:

“What’s on the table now is a basis for discussion. There is movement in respect of pensions, there is movement in respect of VAT, there is movement on primary surplus.

“The important thing is that there be a conclusion to this set of negotiations this week.”

The Irish had feared that a Syrizia victory would provide an advantage to domestic anti-austerity opponents, mainly Sinn Fein, ahead of next year’s general election.

The FT reckons that another €1.6bn-worth of deposits left the Greek banking system today.

For the second time in a few days, protesters have poured into Athens’ Syntagma Square to exhort the Tsipras government not to endanger Greece’s place in the eurozone, and by extension the EU, writes Helena Smith

Unfurling a giant blue and white flag over the retaining wall of the Greek parliament, they chanted “Europe, Europe, we are staying in Europe.”

“Tsipras has to know that he got into power with 36% of the vote, he is not there with the support of all Greeks and he has absolutely no right whatsoever to take us out of Europe,” said Marietta Kontou, a shop owner, insisting it was outrageous the leftist-led government had opened Greece’s membership of the euro to question at all.

“Europe is where this country belongs. It is very important that we belong to the West.”

Standing next to her waving the star-bedecked European flag her friend Angeliki, who studied economics in Britain, said she had “lost sleep” at the thought that Athens might not reach a cash-for-reform deal with creditors and be forced out out of the currency bloc.

“To think that we could end up like Bulgaria or Rumania, an impoverished country in south east Europe, is almost too much to bear. Being an EU member is not only about money, it’s about human rights, a view of the world that is far too precious to lose.”

Several older Greeks who had come in from the suburbs to attend the rally, said membership of the euro had to be preserved at any price. “It is not negotiable, absolutely not negotiable,” said Lefteris Rigas, a retired businessman.

“Those who advocate the return of the drachma are ignorant, ignorant of the chaos that would surely follow. A return of the drachma would hurt the most vulnerable in our society most.”

Highlighting the growing divide between those who support the country’s continued membership of the euro and those who do not, riot police were rushed to the parliament building after anti-establishment, anti-EU protestors attempted to clash with those who had gathered in Syntagma for the rally.

The pro-EU demonstrators have now filled the area in front of the Greek parliament tonight:

No austerity rations for the eurozone leaders tonight, it appears:

Wolf Piccoli of Teneo Intelligence says the latest Greek proposals are designed to tackle political hurdles, rather than steer the economy back to growth.

Oh Mr Tusk, with our second emergency eurozone meeting of the day you really are spoiling us.

Our Athens correspondent, Helene Smith, reports:

Can’t say I’ve missed seeing riot police on the streets of Athens:

Jean-Claude Juncker was disappointingly tight-lipped as he arrived at tonight’s emergency summit.

The Commission president only said a few words as he marched in, including a brisk “Bon Soir”. But will it be a good evening?....

Juha Sipilä, Finland’s new prime minister, doesn’t share Hollande’s optimism.

Asked what he expects tonight, he replies “not much, not much”, before heading towards the Summit. Sipilä then gives a longer interview in Finnish, so we might get more details later....

The French president’s limo just rolled up in Brussels, and a quite optimistic-sounding Francois Hollande got out.

He told reporters that the new proposals tabled by Greece overnight are an improvement on previous ideas, although some things must still be resolved.

Tonight’s talks could open the way to a deal soon, he adds.

Angela Merkel has arrived at the EU summit, telling reporters that there is no basis for a decision on Greece tonight.

Tonight’s meeting can only be a consultation exercise, the German chancellor says.

Back in Athens, riot police are on the streets to prevent clashes between rival anti-austerity and pro-EU demonstrations.

Newsnight’s Jess Brammar is on the scene, and tweeting the latest:

Bit of confusion of Donald Tusk’s comments, so I’ve watched the tape again, and he’s definitely warning about the dangers of ‘Graccident’ -- ie, Greece stumbling into a default, or worse....

European investors have given a resounding vote of confidence that the Greek debt crisis is going to be resolved, if only temporarily, this week.

The German, French and Spanish stock markets have both closed around 3.8% higher – a really hefty rally.

That’s the biggest one-day percentage rise on the Dax since early August 2012, my colleague Nick Fletcher reports.

Those predictions that a deal is just days away are being taken seriously, so if relations fall apart tonight there could be wild swings tomorrow.....

Yup:

There could be tensions in Athens tonight, with rival demonstrations due to take place in the coming hours.

Pro-government demonstrators have begun marching in the Greek capital:

And we’re also expecting another march, in favour of reaching a compromise with creditors and preserving Greece’s EU membership, later.

Our Jennifer Rankin is poised outside tonight’s emergency summit meeting, to hear what leaders say as they arrive:

The head of one of Germany’s major economic think tanks has argued that EU leaders should push Greece to implement capital controls tonight.

Professor Clemens Fuest, head of the ZEW, isn’t convinced that a deal is close, arguing:

“Greece are withdrawing their money from banks, and European Central Bank (ECB) aids are maintaining the bank’s liquidity. As a result, liability risks for tax payers in the euro area are increasing every day, while the bargaining power of the Greek government is growing.

“Alexis Tsipras has no plan for economic recovery in Greece. His only plan is to employ more government officials, to nationalize companies, and to make the citizens of other countries fund his policy. His government is failing to collect taxes at home, for example the taxes from illicit accounts in Switzerland.”

You can watch EU leaders arriving at tonight’s Emergency Summit here.

Reminder: Tonight’s emergency summit is due to start at 7pm Brussels time, or 6pm BST.

There will be other meetings first, though, with Alexis Tsipras due to meet Mario Draghi shortly....

Alexis Tsipras has just arrived for tonight’s summit meeting, with a smile for the cameras but no quotes for the assembled reporters.

The BBC are tweeting more details of their interview with Greek economy minister George Stathakis, who believes a breakthrough has been achieved.

European leaders are starting to arrive for tonight’s emergency summit, starting with Latvia’s Laimdota Straujuma, and Mark Rutte of the Netherlands:

If you’re just tuning in, here’s my colleague Jennifer Rankin’s latest dispatch from Brussels on today’s developments:

And here’s a flavour:

Greece’s eurozone creditors have called for more time to study the latest plan from Athens aimed at unlocking Greece’s remaining bailout funds and staving off imminent bankruptcy.

A meeting of eurozone finance ministers broke up after little more than an hour of discussions, raising questions about the purpose of an emergency summit of EU leaders starting in a few hours.

Jeroen Dijsselbloem, the Dutch finance minister, who chairs the group of 19 eurozone countries, said that the European Union institutions needed time to look at the Greek proposals with the aim of reaching an agreement later this week.

But the Greek plan was “a basis to really restart the talks again and really get a result”, he said, although officials needed to assess whether “the economic reforms [proposed] are enough for the economy to take off again”.

Greece submitted concessions overnight responding to creditors’ key demands including raising VAT and making changes to the country’s pension system that would eventually raise the retirement age to 67..... (click here for more)

Here’s another shot of Greece’s creditors planning their strategy ahead of tonight’s emergency summit:

The FT’s Peter Spiegel has also heard that eurozone finance ministers discussed whether capital controls should be imposed in Greece (as flagged earlier)

He writes:

“There was a discussion about capital controls, but without conclusion,” said one of the officials.

Over in Brussels now, the heads of the IMF, ECB, Europan Commission and European Council are sitting down to plan for tonight’s emergency summit on Greece.

The Eurogroup has now issued a brief statement, confirming what we learned earlier:

The Eurogroup broadly welcomed a new version of the reform plan submitted by the Greek authorities this morning, before the Eurogroup meeting, and considered it to be a positive step in the process.

The Eurogroup asked the institutions (the European Commission, the European Central Bank and the International Monetary Fund) to start analysing the new proposal and together with the Greek authorities work out a list of prior actions with a view to reaching a final agreement on the reform plan later this week.

The Eurogroup might hold another meeting this week.

The Athens stock market just closed for the night having surged by 9% today, as optimism ripples through the trading floor.

Traders are clinging onto hopes that a deal will be reached -- driving bank shares up by 20% today. Quite a vote of confidence that this crisis will end well....

The German and French markets are both up around 3.5% in late trading, as optimistic noises from Athens and Brussels spark a rally.

And in the City, the FTSE 100 index of blue-chip sharesis up now up 99 points or 1.5%.

Hello...... Belgium’s finance minister has revealed that some of his counterparts think capital controls should be imposed in Greece now.....

Optimism is picking up again... European Commission president Jean-Claude Juncker has just declared that he’s aiming for a deal with Greece by the end of the week.

A Greek official has told Reuters that Alexis Tsipras will hold a meeting with Mario Draghi, the ECB’s president, at 5pm BST (6pm Brussels time).

Anyone know why Christine Lagarde didn’t show at the press conference?

Yanis Varoufakis has apparently left the eurogroup without speaking to the media:

And with that, it’s over.

What’s the point of having an EU summit tonight, my colleague Ian Traynor asks, if the eurogroup hasn’t reached an agreement with Greece today.

Leaders are always free to have a different view, Dijsselbloem replies.

We tell them our view of the situation, ready for tonight’s meeting.

“Prior actions” are the key to getting a deal, Dijsselbloem says.

In other words, we want to see what Greece must agree to, and implement, before aid can be unlocked.

How did ministers react to the Greek proposals, and is it true that several versions were submitted?

Yes, there were two versions, one late last night and one this morning. But they were quite similar, so that’s not a big deal, Dijsselbloem says.

We’d have liked them earlier, though.

Onto questions:

What is the initial assessment of the Greek proposals?

The general opinion is that they are “broadly comprehensive”, but we need to check they are comprehensive enough, says Dijsselbloem.

Basically they are a basis to restart talks.

Christine Lagarde and Klaus Regling are both not here, despite being scheduled to speak....

Moscovici speaks briefly, saying that the new Greek proposals are a good basis to work from.

Technical talks will continue, starting this afternoon.

If possible, we will use these new Greek proposals as the basis for a deal. If all goes well, we could reach a final agreement later this week, Dijsselbloem adds.

This will be a very short press conference, declared Dijsselbloem.

Greece has submitted new proposals.... which we welcome.

But given the very short time the institutions had had, they could only give us an initial assessment.

EU insiders are briefing that tonight’s EU leaders summit will go ahead.

Vladis Dombrovskis, the European Commissioner responsible for the euro, has declared that the Eurogroup will meet again this week.

Greece’s proposals are a welcome step but more work together with the institutions is needed. Eurogroup will reconvene this week. We need a deal in the coming days.

Greek journalist Eleni Varvitsiotis has confirmed that €-ministers haven’t reached agreement on Greece -- indeed, the latest proposals are only a “possible” move forwards.....

Ian Traynor reports that Greece’s lenders are divided.....

Finland’s finance minister tweets that work will continue over Greece’s proposals - a diplomatic way of saying no deal today.

Photos from the start of today’s eurogroup meeting are arriving, and they suggest that the mood is grim.

Christine Lagarde looked as gloomy as the weather when she greeted Spain’s Luis de Guindos:

Penny for your thoughts, Wolfgang....

Italy’s Pier Carlo Padoa and France’s Michel Sapin looked contemplative too.

We haven’t received any photos of Yanis Varoufakis inside the building yet - perhaps because he was apparently late for the meeting - but here’s a shot of him arriving:

And here’s Greek PM Alexis Tsipras and Commission president Jean-Claude Juncker heading off for their own talks this morning.

Greece’s finance minister was late for the kick-off of today’s meeting, reports my colleague Ian Traynor, who is also hearing that tonight’s summit won’t yield a deal (no surprise there!)

Assuming the summit actually happens...

The domestic political pressure on Alexis Tsipras is intensifying....

Austria’s finance minister, Hans Jörg Schelling, has scooped the award for the most unamused attendee at today’s meeting.

Schelling told reporters that he doesn’t expect a final deal today, and even hinted that Greece should start picking up the tab for these meetings....

Thanks to Eurasia Group’s Famke Krumbmüller for the translation:

Yanis Varoufakis, Greece’s finance minister, didn’t speak to the press as he arrived at the eurogroup meeting.

He swiftly headed inside, for what could be a rather uncomfortable meeting....

Commissioner Pierre Moscovici remains more optimistic than the rest of the bunch.

He tells the increasingly soggy press pack that the Greek proposals do represent “progress”, but more work needs to be done.

Spanish finance minister Luis de Guindos says there is still time for a breakthrough with Greece, as the rain splatters down in Brussels

Slovakia’s finance minister, Peter Kazimir, tells reporters wryly that “we might see each other soon”, as he arrives at the eurogroup meeting.

Last week, Kazimir told us that he “believes in miracles”, regarding a Greek deal. Hopefully he still does....

This is not looking good. Germany’s Wolfgang Schäuble has told reporters that the eurogroup don’t have new proposals to work on.

He was speaking in German, with lots of shrugs and ‘neins’ to drive the point home:

• * 22-Jun-2015 11:52:50 - GERMANY’S SCHAEUBLE SAYS WE HAVE NOT RECEIVED SUBSTANTIAL SUGGESTIONS FROM GREECE, NO CHANGE SINCE THURSDAY*
  
• 22-Jun-2015 11:53:24 - GERMANY’S SCHAEUBLE SAYS WITHOUT SUBSTANTIAL PROPOSALS WE CANNOT SERIOUSLY PREPARE A SUMMIT ON GREECE*
  
• 22-Jun-2015 11:54:21 - GERMANY’S SCHAEUBLE SAYS THE IMF HAS LIKEWISE NOT RECEIVED ANY GREEK PROPOSALS
  

Several eurozone ministers have chosen to scamper into the building to avoid the rain, rather than speaking to the press.

IMF chief Christine Lagarde gave reporters a no-nonsense wave as she arrived for her meeting with Alexis Tsipras in Brussels.

(unless she’s rehearsing a Juncker-style slap of her own....)

The EC’s top spokesman, Margaritis Schinas, tells the midday press conference we have “a very important day ahead of us”, with several key meetings on Greece.

The commission’s position.... is that the document received by the Greek PM represents a good basis for progress in the eurozone summit.

But which proposal is being discussed?

We have a document signed by the Greek PM, that’s what the Institutions are discussing, fires back Schinas.

Greek government bonds are continuing to rally this morning, despite some concerns that we might not get a major agreement tonight:

Belgium’s finance minister, Johan Van Overtveldt, dampened expectations of a big breakthrough today.

He told reporters outside the Eurogroup that ministers need to see what Greece is proposing.... (maybe Van Overtveldt is foxed by the news they sent the wrong document last night)

French president Francois Hollande has also cautioned that the big deal might not come tonight, flags up AFP’s Alex Pigman:

EU insiders say that the new Greek proposal is a “good basis for discussion”, reports our Europe editor Ian Traynor.

Ian confirms that Greece has made some concessions (as flagged a few minutes ago)

It’s about to get quite busy.

Eurozone finance ministers will arrive for today’s emergency Eurogroup meeting shortly, and should speak to the press on their way in (here’s a live feed from outside the building).

And that clashes nicely with the regular EU midday briefing, (it should be streamed here now).

Reuters has got hold of the latest Greek reform proposals, which includes some pension changes.

• GREECE IS OFFERING TO GRADUALLY RAISE RETIREMENT AGE TO 67, STREAMLINE VARIOUS EXEMPTIONS - OFFICIAL*
  

The key here is how “gradually” this would happen; fast enough to deliver the savings which the institutions want?

And it appears Greece is agreeing that more items should be taxed at the top VAT rate, with fewer exemptions. It still wants to keep its 6% basic rate (which institutions wish to abolish)

• GREECE IS OFFERING TO HAVE A 23 PCT MAIN VAT RATE, 13 PCT RATE FOR ENERGY AND BASIC FOODS, 6 PCT ONLY FOR MEDICINE AND BOOKS-OFFICIAL*
  

The upshot is that a final deal is unlikely today:

• CREDITORS’ INSTITUTIONS UNLIKELY TO FORMULATE COMMON POSITION ON IT ON MONDAY, A FEW MORE DAYS NEEDED FOR CLARIFICATIONS-EURO ZONE OFFICIAL*
  
• FINAL DEAL WITH GREECE UNLIKELY ON MONDAY, BUT COULD BE A STEP TOWARDS A DEAL IN COMING DAYS - OFFICIALS

The Guardian is holding a panel discussion on Greece, Grexit and the troika on Thursday. Come along to have your say.

See below for more details.

Over in the Greek city of Thessaloniki, there’s no sign of a bank run among the crisis-weary population.

My colleague Angelique Chrisafis reports

In Thessaloniki, Greece’s second biggest city, cash-points were quiet around Aristotelous Square. There were no queues and the few people stopping to use ATMs were often just checking their balance or paying bills. Many felt weary at what they said felt like the umpteenth so-called “knife-edge” moment in years of economic crisis.

“I did ask my mum whether I should be worried and needed to withdraw cash but she said ‘Of course not’,” said Elena, 19, a psychology student checking her current account balance. “It does feel like we’ve been at this point of crisis talks so many times over the past few years.”

She added:

“My biggest worry is my future. I’m seriously considering going abroad to find a job and to be able to have children and get married.

I want children in the future but I don’t feel I could start a family without being sure of having the money to raise them. I’d like to be a psychologist and here, with 60% youth unemployment, the only job I could find would be in a café or bar, if that.

My mother, a music teacher, has lost her job.”

Tassos, an accountancy graduate, who finished his military service five days ago, had checked his balance and wouldn’t be withdrawing any cash for the day. He was living off support from his farmer parents in rural nothern Greece while he looked for a job.

“The ideal would be to get an accountancy job in a company,” he said, conceding that it wouldn’t be easy.

Sorry for the typos in that last post - please refresh to get a cleaned-up version.

Alexis Tsipras is about to arrive at the European Commission for talks with EC president Jean-Claude Juncker.

Will be get one of Juncker’s famous kisses? Watch this live feed to find out....

Greek prime minister Alexis Tsipras faces an uphill battle back home over the compromise plan being hammered out with lenders, with his coalition partner refusing to accept tax rises on Greek islands.

From Athens, Helena Smith reports

Panos Kammenos, the defence minister who also heads the coalition government’s junior partner, the right-wng Independent Greeks party, Anel, is adamantly opposed to VAT rates being raised on islands in the Aegean.

I’m hearing that Kammenos says VAT on islands is his party’s bottom line to stay in the government.

Top Anel insiders suggest that the right-wing populist party could withdraw from the coalition in the event of VAT being raised on Aegean islands close to Turkey.

Kammenos fears that if Greek islanders lose the privilege of low VAT they would “get in their boats and go and shop opposite [in Turkey], local markets would dissolve and islands would close.”

The money, he said, could be found by increasing taxes by 1% on luxury good and raising levies on properties owned by off-shore companies.

The hardline Syriza MP Alexis Mitropolos is also concerned about the possible agreement. He told state- run television channel, ERT, this morning, that:

“But what nation would accept such measures, what nation would be able to bear such these policies?”

Konstantinos Michalos, who heads the Athens chamber of commerce and industry (ACCI) summed up the situation:

“The government is facing a very difficult dilemma....between painful measures or rupture (from the EU).”

The French and German stock markets are on an absolute tear this morning - both up over 3%:

Greek journalist Eleni Varvitsiotis reports that Athens has submitted a new proposals, slightly different to the old one....

Finland’s finance minister isn’t happy with the Brussels weather, for such a crucial day:

And you can see why:

OK, I’ve picked my jaw up off the floor now. Greece apparently sent the wrong document to its creditors late last night.

That’s according to Anne-Sylvaine Chassany and Peter Spiegel of the Financial Times, who report:

Three senior officials say there’s been a mix-up with the documents sent to the bailout monitors.

“It’s not so dramatic, but they sent the wrong one by mistake,” said one of the officials...

The officials said the Greeks intended to submit a new version this morning, but it remained unclear whether they had done so. Two officials said they received a revised version during the early morning hours on Monday, but the third official said they had not yet received the new version.

More here:

Regular readers will know that Greece suffered a similar hitch back in February, when it apparently sent the wrong letter to Germany. Easily done, I’m sure.

News of a fresh Greek proposal have had a “magical effect on the markets”, says Connor Campbell, financial analyst at SpreadEX.

The main reason behind the positivity is hope that this latest Greek proposal contains the much needed concessions the country’s creditors have been looking for; described as ‘a good basis for progress’, already these proposals have been received better than the usual ‘insulting’ attempts at reform.

Traders are now watching whether today’s series of meetings are a success. As our agenda explains, the ECB discusses Greek banks shortly, then Tsipras meets Lagarde, Draghi, Juncker and Djisselbloem, then finance ministers convene at the Eurogroup, and finally it’s over to EU leaders for their summit..

Campbell adds:

After a month of interminable claims and counterclaims from each side, there is a bit of excitement on the markets and the genuine semblance of optimism; now this sentiment just has to last the day.

Insiders in Brussels are making optimistic noises this morning. And that’s significant, as they have now had more than nine hours to digest the latest proposals from Greece:

Journalists are poised in Greece ready for queues at the cash machines, but there’s no sign of panic:

Bruno Macaes, Portugal’s Secretary of State for Europe, says it’s vitally important to get a Greek deal soon.

He told Radio 4’s Today Programme that:

Time is running out and we need a fundamental solution to the problem

It would be “bad for the eurozone for a whole” if Greece left the single currency, Macaes said. It would also probably spark a “new commitment to integration”, to avoid other countries coming under fire.

Portugal was bailed out back in 2011, and Macaes says he’s “very confident” of avoiding a repeat:

Everything we have done in the last three years is to avoid being pulled back into this market turbulence.

If a final deal isn’t reached today, EU leaders have another opportunity later this week when they hold their next summit:

Here’s another sign of rising confidence that significant progress will be made at today’s meetings.

The interest rates (or yield) on Greek government has fallen sharply in early trading, showing traders see a lower risk of default.

The yield on two-year Greek debt has tumbled to 24.9%, down from 28.5% on Friday. That’s a really chunky move (but also means the bonds are seen as very risky).

10-year Greek bond yields are down by 1 percentage points, from 12.6% to 11.6%.

Typically, a country is locked out of the markets when its 10-year bond yields hit 7%, so Greece has a long way to go yet....

Are the markets over-reacting? It certainly wouldn’t be the first time that shares have surged on hopes of a deal, only to fizzle out.

Investors are calculating that a) Greece’s latest proposals offer genuine prospects of a deal, and b) European leaders aren’t prepared to let the eurozone fragment.

European markets are a sea of green this morning:

The key question is whether Greece has made sufficient concessions on pensions, says Frederik Ducrozet, economist at Credit Agricole.

ELA is the emergency liquidity assistance provided by the European Central Bank to keep Greek banks functioning, now totalling €84bn.

There is “new hope of progress in Greek bailout negotiations” in the City today, says Mike van Dulken of Accendo Markets, after Athens has presented new proposal to creditors late last night.

Germany’s DAX has leapt by 2.5%, as Frankfurt traders embrace optimism over Greece....

From Brussels, my colleague Jennifer Rankin sums up the situation:

Greece has submitted 11th-hour concessions to its creditors ahead of a crucial day of talks aimed at preventing it from crashing out of the eurozone.

Its proposal followed a hectic round of telephone diplomacy on Sunday between Germany’s chancellor, Angela Merkel, the French president, Francois Hollande, and the European Commission president, Jean-Claude Juncker.

Juncker’s head of cabinet, Martin Selmayr, said the Athens proposal offered “a good basis for progress”, though he described the negotiations as a “forceps delivery”, underscoring the exertions to prevent Greece leaving the eurozone.

It was not immediately clear how far the Greek plan met its creditors’ demands for spending cuts and welfare reforms.

City traders are predicting that the German stock market will leap this morning, on hopes of a breakthrough today....

Optimism is building that we will, finally, see meaningful progress today.

As Luxembourg’s foreign minister Jean Asselborn told Germany’s Deutschlandfunk radio a few minutes ago:

“There will be a lurch forward.”