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Summary

  1. Eurozone ministers speak of 'difficult issue of trust' over Greek promises to implement reform
  2. They are assessing Greek proposals similar to those rejected in last Sunday's referendum
  3. Athens aiming to secure a new bailout and avoid exiting the euro
  4. One option reportedly suggested by Germany would see Greece temporarily leave the eurozone

Live Reporting

By Dominic Howell, Lauren Turner, Claire Brennan and Thom Poole

All times stated are UK

Goodbye

Thanks for staying with us...

It's been a long day and an even longer night in Athens, Brussels and here in London. We're bringing our live coverage to a close now. But you can keep up to date with all the latest developments here

Cold comfort

Robert Peston, BBC's economics editor

Dijsselbloem: 'Issue of credibility'

News agency AFP quotes Eurogroup chief Jeroen Dijsselbloem as saying: "We have had an in-depth discussion of the Greek proposals, the issue of credibility and trust was discussed and also of course financial issues involved, but we haven't concluded our discussions.

"It is still very difficult but work is still in progress."

Malta's PM prepared for 'long day'

Joseph Muscat, Prime Minister of Malta.

Dijsselbloem: 'Work was difficult'

Eurogroup President Jeroen Dijsselbloem has told journalists that the talks were "difficult", but work was still in progress.

Meeting closes

News just in: Sources confirm that the Eurogroup meeting of finance ministers has closed for the day and will start again tomorrow.

Finnish Finance Minister Alexander Stubb has tweeted the news below:

View more on twitter

No easy path

Chris Morris, the BBC's Europe Correspondent

This was never going to be easy. Finance ministers are drawing up a list of extra demands for Greece to approve as evidence that they actually mean business.

Finland has said that its government is not willing to support a bailout of Greece.

The Italians on the other had have said they will come in tomorrow and demand that a deal is done for the sake of European unity.

Some welcome advice

As the talks continue, the Greek rumour mill has gone into overdrive. But economist Tom Nuttall - along with an impish Bart Simpson - offered this warning. 

Division

Nick Malkoutzis, Deputy editor of Greek daily Kathimerini English Edition tweets

Who are the Finns Party?

A general election in Finland earlier this year saw the Finns Party enter a coalition government - with its leader Timo Soini appointed foreign minister. 

Its eurosceptic stance is likely to have played in a part in Finland's reported rejection of Greece's latest bailout proposal. Mr Soini previously described its bailout policy as "a moral hazard".

Professor of politics at Helsinki University, Jan Sundberg, took a closer look at the party following its successful election performance. You can read his thoughts  here .  

Spanner in the works

Finland's deputy prime minister Timo Soini
Reuters

So it appears Finland really is saying no.

Business newspaper Kauppalehti reports (in Finnish) that the country's government does not intend to vote in favour of a new emergency loan program for Greece.

The decision may be down to the position of Finland's foreign minister Timo Soini, who is also the leader of the eurosceptic, Finns Party.

Kauppalehti cites sources that claim Mr Soini is not prepared to accept the debt deal with Greece on any terms.

He was previously quoted as saying that the Greek bailout policy was "a moral hazard and a pyramid scheme that will continue as long as the milkmaid has a cash cow to milk".

Negotiations set to continue

AP news agency has just reported that there are few signs the Greek bailout discussions between the country's finance minister and his counterparts in the 19-country eurozone are going to wrap up any time soon. 

The finance ministers have been meeting since mid-afternoon to assess whether Greece's reform proposals are sufficient to merit another bailout package.

European diplomats reportedly told AP the meeting could run late, even until the early hours of Sunday.

Finns can't stop Greece bailout

Jennifer Rankin , Guardian reporter tweets

Wolfgang Schäuble's 'Grexit plan'

Mathieu Von Rohr, Deputy Head of Foreign Desk at Der Spiegel tweets

Finland out?

This tweet from Finish journalist Jarno Hartikainen suggests Finland has refused to accept the new bailout proposals.

It is confirmed: Finnish gov't won't accept a new bailout package to #Greece. #Eurogroup

So if Finland does put its foot down - what does that mean for Greece's chances of securing the money it needs from the European Stability Mechanism? 

Although the support of all eurozone nations is preferable, the ESM can turn to an  "emergency" clause which states a deal can be passed if 85% of remaining members states agree.

This graph below tweeted by Professor of Economics Karl Whelan helps explain what kind of power Finland holds compared to other nations. 

Time to get those ESM voting scenario calculations out.

Time to get those ESM voting scenario calculations out.

'€25bn' for the banks...

A man begs as people wait to be allowed into a bank on 3 July, 2015.
AP

Greek banks have been closed for some time now and strict capital controls put in place. But massive deposit withdrawals prior to the enforced bank holiday have left institutions very short on cash.

Reuters news agency reports that eurozone ministers have been told that up to €25bn of any bailout loan would be needed to recapitalise banks that are on the verge of collapse.

That is more than double the amount that Athens forfeited in financial stability funds at the end of June when it walked away from talks on completing a previous bailout programme.

Trust becomes 'big issue'

Andrew Neil, BBC's Daily Politics presenter

Will leaders choose Grexit?

Person looking at 'No' sign
Getty Images

European Union leaders are preparing for a final decision on Greece's future at a summit on Sunday. So what are the possible scenarios, asks the BBC's Paul Kirby.

Find out more here

On Syriza's doorstep...

A homeless person near Syriza's office
AFP

As Greece's economy has declined, drug use and prostitution has become a common sight around Omonia Square in downtown Athens, writes the BBC's Jasmine Coleman.

It is not where you would expect to find the main offices of a country's ruling political party.

But left-wing Syriza still has its headquarters nearby, in a show of solidarity with the poor and the vulnerable that it pledged to protect when it came to power.

Read more from Jasmine here.

What is the ESM?

What is the European Stability Mechanism, or ESM, which Greece is seeking financial support from? 

Our handy explainer here will tell you all you need to know. 

Warning shot?

The "timeout" from the eurozone "would be accompanied by support [for] Greece as an EU member and the Greek people with growth-enhancing, humanitarian and technical assistance over the [coming] years", the document reportedly says.

The Wall Street Journal adds that the purpose of the document is not clear - "whether it is a warning shot or a real proposal from the biggest eurozone economy".

'Better solution' needed

According to the Wall Street Journal: "In the document, dated 10 July, Germany takes a tough line on spending cuts and policy overhauls Greece submitted to its international creditors, the other eurozone countries and the International Monetary Fund, late Thursday."

It quotes from the document: "These proposals cannot build the basis for a completely new, three-year ESM [European Stability Mechanism] program, as requested by Greece. We need a better, a sustainable solution."

More on 'German document'

The

Wall Street Journal says it has seen a document prepared by the German finance ministry which proposes a five-year Greek exit from the eurozone as one of two possible options.

According to the newspaper, it was sent by Germany Finance Secretary Thomas Steffen to counterparts from other eurozone countries - but has not been discussed at the Brussels meeting.

Greece has to 'show it's serious'

The BBC's Europe correspondent tweets...

EU official says #Greece needs to do more on product and labour market reform. And needs to pass more laws this wk to show they're serious.

What happened to the 'No' vote?

The Daily Telegraph

Less than a week after they triumphantly gave international creditors a bloody nose by rejecting a harsh austerity plan, angry and bewildered Greeks are left wondering how they now find themselves swallowing an even worse deal, writes The Daily Telegraph's Nick Squires. 

So whatever happened to the referendum result, he asks? 

Read more here.

'Deal within 24 hours'

Giorgos Stathakis
BBC

Watch the BBC interview with Greek Economy Minister Giorgos Stathakis here - he tells Gavin Hewitt that a deal will be reached this weekend, with trust rebuilt "step by step". 

He also says Greece's latest proposals in negotiating with creditors have been accepted by eurozone finance ministers.

'Agreement unlikely on Saturday'

Europe editor of the Guardian tweets...

#greece #eurogroup session in pause. nowhere near agreement. unlikely tonight. could be passed to sunday summit - sources

#greece #eurogroup while session in pause €zone/troika drafting written response to greek proposals, what more greeks need to offer-sources

#greece #eurogroup if gks hated troika before,it can only get worse.germans demanding guaranteed outside vetting of tsipras reforms - source

'EU paralysed'

Channel 4 News economic editor tweets...

Upsum Eurogroup so far: Greece asked for more austerity; German Grexit plan non-starter; @tsakalotos can’t sign without words on debt (1/2)

(2/3) in other words the exact same situation as for 6 months. But Germans now openly pushing for Grexit, IMF for debt relief, EU paralysed

Make your move...

Chess display in Athens
Reuters

A chess board on display in an Athens shop - many Greeks feel it is particularly apt today, with what they see as tactical moves being made miles away in Brussels.

Slow going

Perhaps unsurprisingly, the BBC's Jenny Hill, in Brussels, says the talks are said to be going "extremely slowly" - and that they are expected to continue long into the evening. 

Sources have told our correspondent there is a "50/50 chance" of a deal being struck. However, Germany was said to be "putting up fierce resistance at the negotiating table". 

'Restrictions to remain'

According to Reuters, Giorgos Stathakis says banking restrictions will remain in place "for some time". They include a limit of €60 a day which Greeks can withdraw from cash machines.

'Different options' explored

Our correspondent Theo Leggett continues: 

[German] officials may well have been exploring numerous different options. These could simply have been leaked in order to put more pressure on Greece during the negotiations.

It's hard to see the benefits of casting Greece into a limbo where it would apparently be neither a full member of the euro, nor committed to producing its own currency and rebuilding its economy outside the single currency zone.

However there seems little doubt that, even if this weekend's talks prove fruitful, future negotiations between Greece and its creditors are likely to be fraught.

Yes, Athens has already agreed to most of their demands - despite the resounding 'No' vote in last Sunday's referendum. But the process has moved on. It's no longer about releasing a mere 7.5 billion euros from an existing funding programme. Greece is now requesting a new three-year bailout, worth 53.5 billion euros. For that kind of money, it is likely to face demands for yet more painful reforms.

Note of caution?

Here's the latest from the BBC's Theo Leggett on those reports on Germany's position:

The Frankfurter Allgemeine Zeitung says it has seen a German position paper which sets out two possible options for Greece - firstly, it could transfer assets worth 50bn euros into a special fund; they could then be sold and the revenue used to pay off its creditors.

Secondly, it could take a five-year 'time out' from being a member of the euro, in order to restructure its debts.

A note of caution: although this paper appears to come from within the finance ministry, it does not necessarily reflect Germany's actual position in the talks. Indeed, there are some indications that it doesn't.

'Clear terms'

Greece's Economy Minister Giorgos Stathakis says the [Greek] proposals have clear terms and the primary surpluses have been agreed, Reuters news agency is reporting.

Important phone call...?

Greek newspaper Tovima reports (in Greek) that there has been a pause in proceedings to allow Greek Prime Minister Alexis Tsipras, who is in Athens, and Finance Minister Euclid Tsakalotos, in Brussels, to discuss matters over the phone.

'Political will'

Stathis Kalyvas
BBC

And here's a different view of things. 

Stathis Kalyvas, professor of political science at Yale University, tells the BBC's Tim Willcox he is feeling very positive. 

He says it is the first time there is the political will to change things and that he thinks Alexis Tsipras is the person who can lead that change. 

'No future'

Vasilis Papadopoulos
BBC

'No' voter Vasilis Papadopoulos, 24, says he wants to leave Greece because he doesn't see a future in the country. Instead, he has applied to study in the UK. 

"Nothing is changing here", he says.

Watch our interview with him here.

More on 'temporary Grexit'

Brussels deputy bureau chief for AFP news agency tweets...

German finmin internal paper raised idea of five-year 'temporary Grexit' , but wasn't raised at Eurogroup, source tells AFP