Greek Prime Minister Alexis Tsipras is to meet the country’s creditors ahead of today’s emergency eurozone summit in Brussels.
On Sunday he made a new offer on a reforms package in an 11th hour bid to prevent a default on a €1.6bn IMF loan.
Although refusing to be drawn on exactly what the new proposals are , Greece’s Finance Minister Yanis Varoufakis did say he was optimistic that a deal will be reached. Brussels is quoted as saying the new propositions “are a good basis”.
Elected on a pledge to end austerity, both men have defiantly resisted demands to cut pension spending however they may now be willing to concede raising VAT.
On Sunday evening thousands of demonstrators gathered in Athens in support of its left-wing government.
They want an end to measures imposed by Greece’s lenders in two previous bailouts, which have left one in four Greeks unemployed.
If a deal is finally reached it will have to be one which is acceptable to Tsipras’s Syriza party or else he may be pushed to call a snap election to secure a mandate for the agreement.