Thank you for staying with our live updates. Negotiations went on throughout the night between European leaders over the Greek crisis, and we still await an outcome. While we await that decision we will be closing down this page, but for the latest developments click here .
Eurozone leaders have talked through the night for fourteen hours - and they haven't finished yet.
Greece is all but bankrupt and it's now been told it has to push legislation on a series of reforms through parliament in the next three days - before any talks on another financial bailout can begin.
But there's still no agreement on exactly what Greece has to do.
Eurozone finance ministers had presented an additional list of demands - some of which have been watered down, some of which are still unacceptable to the Greek government.
One sticking point is a privatisation programme designed to raise up to 50 billion euros in revenue - Greece, backed up by several countries, says it hasn't got anywhere near that amount of state assets to sell.
But beyond the details lies the big picture - the chairman of this summit Donald Tusk has described this as perhaps the most critical moment in the EU's history. It's not just about Greece, it's about the future direction of the single currency.
News sources are now reporting that the two sticking points for Greece in the negotiations are the role suggested for the International Monetary Fund (IMF), and the proposals for an independent fund to hold Greek assets ahead of privatisation.
For some journalists, however, the wait has been too much,,,,,Copyright: EPA
The government spokesman for Cyprus, Nikos Christodoulides, has tweeted from Brussels: "Two major issues still pending... #Eurozone Summit on #Greece..."
As the talks continue to gain attention into the night, so does the hashtag #ThisIsACoup on Twitter, (which is currently trending).
The sentiment behind the hashtag is the belief that the list of demands and proposals being placed on Greece - from pension rules, claiming assets and privatisations - amount to a coup by the Eurogroup.
Currently the phrase is at top of Twitter's trending hashtag terms.
The Nobel Prize-winning economist Paul Krugman has made reference to the hashtag in a piece for the New York Times.
He writes: "... this Eurogroup list of demands is madness. The trending hashtag ThisIsACoup is exactly right. This goes beyond harsh into pure vindictiveness, complete destruction of national sovereignty, and no hope of relief."
Tweets: Summit to start again in half an hour - at 2am. Seeing as @tsipras_eu was live on TV at about 0230 in Athens recently he'll be fine #Greece
Reuters news agency is reporting that two official French sources have denied a report by a senior European Union official on Monday that France could give Greece a bilateral loan to help it over an immediate funding deadline pending an agreement on a third bailout.
The EU official said a bilateral loan from Paris was one option under discussion to help raise some €7bn that Greece needs by 20 July to avoid defaulting on a bond redemption to the European Central Bank (ECB), which could force the ECB to end funding for Greek banks.
Other options included paying out about €3.4bn in profits from the ECB's holdings of Greek bonds that were returned to member states, and tapping a €60bn fund held at the European Commission known as the European Financial Stability Mechanism, the official said.
On a lighter note, here's how political cartoonist for The Times, Gary Barker, has summed up the ebb and flow of the Greek crisis over the past week...Copyright: The Times
In this article (in Greek) Mega quotes sources in Greece as saying Italy, Austria and Belgium are supporting the Greek position for the first time.
Greece's former finance minister Yanis Varoufakis bowed out of negotiations in Europe last week - but he's still determined to have his say.
He has published a blog, containing an extract from an article due to appear in German newspaper Die Zeit later this week.
He says he is no longer writing as a "Greek politician", but as a "European" observing the German finance minister's plan to restructure the eurozone.
"Five months of intense negotiations between Greece and the Eurogroup never had a chance of success," he writes.
"Condemned to lead to impasse, their purpose was to pave the ground for what Dr Schaeuble had decided was 'optimal' well before our government was even elected - that Greece should be eased out of the Eurozone in order to discipline member-states resisting his very specific plan for re-structuring the Eurozone."
- Copyright: BBC
Christos Apostolides has an IQ of 156. He is also the chairman of Mensa in Greece. The BBC's Joe Miller asked him what insight his problem solving skills gave him into the current crisis.
He said: "Northern Europe has a completely different way of thinking when it comes to how the whole of Europe should function and operate.
"The culture of the Greek people, due to 500 years of the Ottoman rule, is not like that of the rest of Europe. That’s the difference.
"It is proven by DNA that we are closer to the ancient Greeks than anybody else in the surrounding countries, but we can’t sit and reminisce about Greek history and philosophers, we have to come forward and prove that the new generation of Greeks are worthy of their history."Quote Message: "History has shown us that Greece hasn’t actually solved that many problems. Greece should stay in Europe. Europe can not exist without Greece - even the name Europe is Greek. But without the reforms Greece can not move ahead. from Christos Apostolides
German magazine Der Spiegel has delivered its assessment (in German) of the demands being put to Greece by eurozone ministers and creditors. It labels the proposals as a deliberate attempt to "humiliate" the Greeks.
- Copyright: Getty Images
As the political temperature rises over Greece's debt crisis there is speculation that another government upheaval could be in the offing.
There is a precedent for a technocrat coming in to tackle the crisis - in November 2011 Lucas Papademos, a former European Central Bank (ECB) vice-president, took over as prime minister. He was seen as more amenable to the austerity demanded by Greece's creditors. At the time the ruling socialist Pasok was struggling to govern.
The BBC's Europe correspondent tweets:
There have been so many developments with Greece in the last day that Politico Europe's Stephen Brown has clearly run out of paper.
Jean Quatremer, the Brussels correspondent for the left-wing French newspaper Liberation, writes that there would be no such thing as a temporary Grexit - any departure from the eurozone would be permanent, he says.
In the article, he lays out a stark image of what might happen after a Grexit.
- Copyright: Twitter
This just in from Malta's prime minister, Joseph Muscat:
It's just after 23:30 in Brussels, and it's time for a break. There's still plenty of talking to come - here's a tweet from the European Council President's spokesman...
- Copyright: Getty Images
Alexis Tsipras faced a revolt from 17 of his Syriza MPs on Friday, when they withheld their support in a vote to authorise bailout negotiations with eurozone leaders.
It meant he had to rely on opposition members to ensure the measure passed.
Mr Tsipras is now expected to clear out the rebels, as part of a reshuffle. They include Energy Minister Panagiotis Lafazanis.
But who will replace them? There has been talk of a full-scale national unity government with opposition parties talking seats in the cabinet.
Whatever his approach, Mr Tsipras needs to show Europe that he is serious about getting any future debt deal through parliament.
This from Germany's centre-right Frankfurter Allgemeine Zeitung (FAZ) daily: 'Trust has been lost - Doubts about Greece's willingness to reform'Copyright: Frankfurter Allgemeine
- Copyright: Le Figaro
Here's conservative Le Figaro's front page: 'Greece drives a wedge between France and Germany'.
The Wall Street Journal has gone with a cautious front page headline that is almost certain to remain correct in the morning, regardless of what happens overnight...Copyright: WSJ
Eric Maurice, a journalist at EUobserver, tweeted this revealing pic @er1cmau:Copyright: Eric Maurice tweet (courtesy of EU)
- Copyright: Twitter
At 19:48, we told you how the term #TspirasLeaveEUSummit was trending - largely thanks to Greeks who were urging their Prime Minister to leave talks they feel will damage Greece.
Another term is gathering a lot of support on Twitter now too - #ThisIsACoup, that is now the tenth most trending topic on the site worldwide (and is also popular in Germany...)
- Copyright: Liberation
Here is Monday's front page of the French left-wing newspaper Liberation - 'What is Germany playing at?'
It's fair to say France and Germany are not seeing eye-to-eye as they struggle to resolve the Greek crisis.
Italian journalist Marco Zatterin tweets that the latest eurozone reform proposals for Greece are "humiliating and disastrous", according to Greek government officials.
- Copyright: BBC
Paul Kirby, the BBC website's Europe editor, writes:
"There may only be four pages, but if this draft document is agreed, it would be an extremely difficult pill for Greeks to swallow.
"For Alexis Tsipras and his left-wing Syriza-led administration, some of the ideas would be little short of humiliation.
"Even if Greek MPs pass sweeping reforms by Wednesday, the government would have to allow international creditors full monitoring of its work in Athens and agreement of draft laws in advance. Syriza came to power promising an end to such oversight.
"Another possible step is to 'amend or compensate' for 2015 Syriza laws that run counter to what it agreed with the eurozone in February.
"That might mean overturning the reinstatement of 4,000 civil servants such as school guards and cleaning ladies.
"And if Greece could not agree to that it could be offered 'time-out' from the eurozone, and the chance of restructuring its debt."
- Copyright: Guardian
And here is the Guardian's take on the latest developments...
The front pages of tomorrow morning's papers have started to filter through. Here's the Financial Times' take on the Greek saga.
BBC presenter Andrew Neil speaks with brutal honesty - and a lot of eurozone watchers probably sympathise entirely.
Politico Europe's Tara Palmeri - well worth a follow on Twitter - writes that eurozone leaders are half-way through the four-page report proposing reforms for Greece.
She also says a proposal for the eurozone to privatise €50bn of Greek assets has been met with a "100% no" by Athens.
- Copyright: AFP/Getty Images
Greece's Kathimerini newspaper writes that the country's hospitals might soon start to run out of supplies.Quote Message: The current restrictions on imports are a key problem, according to sources, who said medical supplies will last another 20 or 30 days. Procuring perishable foods such as meat and milk is also problematic, according to sources, as suppliers often ask to be paid in cash. Even firms supplying detergents and soap have started asking for down payments in order to supply goods.
And here's more on those clashes, from our man in Brussels:
- Copyright: EPA
Solving the Greek debt crisis was never going to be easy - but some negotiators have been feeling the heat more than others.
Reuters reports that the atmosphere between finance ministers during talks on Saturday became "tough, even violent" at times.
Germany's Wolfgang Schaeuble seemed to be at the centre of much of the heated debate. At one stage he reportedly snapped at ECB governor Mario Draghi, "I'm not stupid".
One participant told the news agency that Mr Schaeuble also had to sit down with French finance chief Michel Sapin to clear the air before talks resumed on Sunday.
"It was crazy, a kindergarten," the source added.
Meanwhile, Greece's new finance minister, Euclid Tsakalotos, was keeping a calm head.
"I don't know if it's because he's tired or just the way he is, but he can really soak up the pressure," said one observer.
- Quote Message: What has happened in the last 24 hours is quite extraordinary. I'll dare say that we're living in historic moments through the transformation of the eurozone and indeed the European Union. It's not only about Greece any longer. This is about who has the upper hand in the eurozone. from Dimitrios Syrrakos Eurozone economist, Manchester Metropolitan University
Some news coming in from AFP, who quote a Greek government source as saying that the latest proposal for reform is "very bad" for Athens.
The source adds that the Greeks are "trying to find solutions".
We'll bring you more on this as we get it.
- Copyright: Getty Images
The drachma - Greece's old currency. And perhaps its new one.
If Greece fails to agree to the suggested reform plan, it may find itself being temporarily excluded from the eurozone - that's according to a four-page document now being discussed by eurozone leaders.
It takes a brave person to try and predict what might happen next in Greece. But, over at Bild newspaper in Germany, they've been trying to do just that.
In brief, here are the possibilities they outline:
- A deal is signed - and possibly a new coalition is formed in Greece
- Eurogroup says it is unhappy with Greek plans – so Tsipras prepares for Grexit
- Eurogroup says it is unhappy with Greek plans – Tsipras refuses Grexit
- Prime Minister resigns ahead of Grexit - so elections are called
Greeks are coming up with some inventive ways to restore cash-flow in these cash-strapped times, the BBC's Jasmine Coleman reports.Copyright: Reuters
The BBC's Economics Editor Robert Peston has been examining the "killer" lines in the Eurogroup rescue offer.
Firstly he says Greece needs additional finance of €82-86bn - which would boost debt to well over 200% GDP.
A "bonkers" prospect, he exclaims.
Secondly, Greek banks need additional capital of up to €25bn to absorb losses from the implosion of the economy - caused by forced bank closures.
And thirdly, if a deal is not reached, Greece would be offered "swift negotiations on time out of euro, with possible debt restructuring".
To keep across more of his updates follow @Peston on Twitter.
We wonder if Alexis Tsipras is checking his Twitter account? If so, he'll see that the hashtag #TsiprasleaveEUSummit is gaining traction. Angry voters are urging the Greek PM to pull out of bailout talks with eurozone leaders "before it's too late".
Earlier, we reported that Alexis Tsipras had spoken to the US Treasury Secretary Jack Lew about the ongoing talks.
In a statement released after the call Mr Lew said he was "encouraged by reports of some progress" and urged both sides to show flexibility.
"Rebuilding trust requires demonstrating that a program will be implemented and that there will be measures to make the debt sustainable," he added.
With new proposals on the table what is the risk of a Greek exit from the euro now?
The BBC's Paul Kirby examines the different scenarios and the wider impact of a Grexit, in this piece.
European Council President Donald Tusk's spokesman tweets:
It sounds like it is dinner time over in Brussels.
Cyprus' government spokesman just posted this picture of the seating arrangements.
Greek PM Alexis Tsipras appears to be sitting between Spain's Mariano Rajoy and Italy's Matteo Renzi.
We probably should not read too much into the seating plan...
The Financial Times' Robin Wigglesworth just tweeted this bleak assessment on the possible week ahead for Greece - it's written by the global bank Citi.
- Copyright: Getty Images
The sun is setting across Greece, including in Athens (above). In what sort of country will Greeks awake on Monday?
The spokesman for Cyprus' government says the talks will restart very soon - this was posted five minutes ago.
There's no news about whether the bilateral talks held on the sidelines were fruitful.
BBC News, Brussels
Eurozone leaders are considering a four-page document that was put forward by the eurozone's finance ministers.
We have seen a copy of it - it puts together some quite stiff demands on the Greek government.
The demands include reform of tax, pensions and VAT, but just at the bottom of the document, it talks about a time-out from the eurozone in case of no agreement being reached.
Greece, it says, would be offered a time-out from the euro area with possible debt restructuring.
Also in that four-page document is a demand that the institutions - the IMF, the European Central Bank and the European Commission - be allowed back to Athens to oversee fiscal reform within many ministries.
Anarchists in black masks are among anti-austerity protesters gathering in central Athens, reports say.
- Copyright: PA
We're just getting news that Liverpool FC have agreed to sell their star player Raheem Sterling to Manchester City for £49m ($76m).
We've just worked out that a Greek bailout worth €82bn would be the equivalent of 1,023 Raheem Sterlings.
Politico Europe reporter Tara Palmeri has obtained what appears to be a list of reforms that finance ministers want the Greek government to implement by Wednesday to receive a bailout.
As we just mentioned, AFP say the new bailout could cost as much as €86bn.
The news agency AFP is reporting that a new bailout for Greece could amount to €82-86bn.
This is according to a document drafted by the eurozone finance ministers who submitted it to the 19 eurozone leaders. The leaders' summit has since broken up for bilateral talks on the Greek bailout.
Greece's total debt comes to a staggering €320bn and some of this is due imminently. Athens has already missed an IMF payment of €1.5bn and it owes more money over the next month or so.Copyright: BBCCopyright: BBC
Here's more from the European Council president's spokesman:
The spokesman for European Council president Donald Tusk tweets that the main talks have now been suspended - and that separate side talks between individual countries will take place to try and find a solution.
Steve Johnson emails : The Greeks have shown they cannot be trusted. Each of their reforms must be independently verified and any funds released in tranches with the implementations.
We have had 5 years of unfulfilled Greek "promises" and "commitments". The lenders are right to be cynical and doubting.
Some of the Greek Twitterati appear to have got hold of the draft documents from this afternoon's Eurogroup meeting.
It discusses a possible temporary exit from the euro as well as a Luxembourg fund holding up to €50bn of Greece's assets.
El Mundo correspondent Pablo Rodriguez has more details:
- Copyright: AFP/Getty Images
The Italian prime minister Matteo Renzi sounds like he's a little fed up with the whole Greek affair.
On arrival at the emergency summit in Brussels he said that "there's a great need for Europe to go back to do what it needs to do'' and tackle other issues - highlighting Libya, Ukraine and Iranian nuclear talks amongst other things.
Mr Renzi said the differences between Greece and its creditors "were not just details" but that the distance between the two sides "has been greatly shortened".
Philip Karafillides tweets : Unbelievable the way Greece is being bullied! No one is thinking about the Greek people, our patience is wearing thin.
Poland's former finance minister Jacek Rostowski has called for the eurozone to reform itself and avoid further crises. One solution, he says, is a so-called firewall to protect member states.
"What we certainly want - and expect - is for the eurozone to reform itself so that it is a properly functioning system and not subject to these kind of chaotic crises.
"And essentially what that means is the existence of a firewall which is potentially there whenever there's a crisis which threatens the integrity of the zone as a whole.
"And, at the same time, a political mechanism for deciding which countries [receive] the protection of that firewall or does not and is expected to leave."
One last nugget from Martin Schulz: a Grexit, even a temporary Grexit, is not an option for him.
Prompted to give a rating out of 10 for how Greece and European partners have handled the crisis in recent months, Martin Schulz, the President of European Parliament, declines.
We'll leave it to your imagination how he might have answered.
The spokesman for European Council President Donald Tusk tweets this image from the talks:
- Copyright: BBC
More from Martin Schulz, who says the majority of those in the European Parliament were against a Grexit.
"I really cannot remember, in all my time in European politics, whether I have come across a situation like this.
"This is really all about the European Union. If the EU is going to have any credible force, it is going to have to demonstrate it is capable of solving its own problems."
Luxembourg holds the presidency of the EU until the end of the year - and now its foreign minister has been speaking starkly of his concern over Europe's future.
"It would be a disaster for the reputation of Germany within the EU and the world if Berlin did not take up the opportunity that has emerged," Jean Asselborn told the Sueddeutsche Zeitung newspaper .Quote Message: The Grexit must be prevented. And if Germany is preparing for a Grexit, it could provoke a profound conflict with France. That would be a disaster for Europe.
More strong words from Martin Schulz: "We are at the crossroads. Are we going to move forward together, in the spirit of unity, or are we going to start falling apart? I mean, that is the question that is really on today's agenda."
Martin Schulz, president of the European Parliament, has urged eurozone leaders to strike a deal today.
He added he had never encountered a situation similar to the Greek crisis in all his time in European politics.
Here are some images from the start of the eurozone leaders summit. Oh, to be a fly on the wall...Copyright: AFP/Getty ImagesCopyright: EPA
Dave Lexington tweets : Greek people voted No but their PM and govt ignored it. How can Europe trust them if they went against their own people?
Spain's prime minister Mariano Rajoy tweets: "Today's meeting has one goal: making a decision on #Greece. Who suffers is the Greek people."
Ireland's Prime Minister Enda Kenny offered his support to Greece, telling reporters: In fairness, the Greeks have now applied for a programme and tabled propositions. In a very frank and forthright series of exchanges they have strengthened their commitment and trust-building."
However he added that Greece needed to prove they are serious "about implementing legislative and structural reforms. We want to see their commitment to building trust."
We might hear more on this over the next few hours.
The deputy editor of Greek daily Kathimerini English tweets:
Leaving the finance ministers' meeting the European Economic Affairs Commissioner Pierre Moscovici sounded cautiously optimistic.
He told reporters: "There is overall a basis for opening negotiations on a new programme for Greece and Greece must do more in the short term and medium term. That remains our position and it is our hope that at the end of the day we have a good accord that maintains the integrity of the euro and allows a reform Greece to continuing progressing in the euro."
The Wall Street Journal's Matthew Dalton tweets...
Here's a bit more from the Greek Prime Minister Alexis Tsipras as he arrived at the summit. This was just posted on his YouTube account.
Emerging from the finance ministers' meeting, Finland's Alexander Stubb seemed optimistic. "I think there is a very good proposal on the table," he said, adding that eurozone leaders would now discuss the finance ministers' report.
"There is far-reaching conditionality. Greece needs to implement laws by 15 July. There are tough conditions on labour reform, VAT and taxes [and] a privatisation fund.
"If we were to open negotiations on the ESM, this whole package has to be approved by the Greek government and Greek parliament, then we'll have a look."
Joe Miller, BBC News, Athens
Getting hold of Syriza members in the past few days has proven difficult - many are deflated and disillusioned, while others are busy dealing with the internal divisions that have erupted since Mr Tsipras' apparent capitulation on accepting austerity measures.
But in a small cafe in the Metaxourgeio neighbourhood in Athens, I encounter a group of "no" voters, some of whom are hardcore Syriza supporters.
Over freddo cappuccinos and rolled cigarettes, they discuss the current negotiations in Brussels with palpable pessimism.
"The strategy of the last five months is in ruins," one senior Syriza member tells me.
"This week has changed it all," Vasilis, another party member, adds. "Going back to the drachma is the only option now."
Jeroen Dijsselbloem, the head of the Eurogroup of finance ministers, says on his arrival:Quote Message: We have come a long way, solved a lot of issues, but some big issues still remain.
He, like many other ministers, appears quite relaxed as he enters the talks with heads of state.
Finland's finance minister Alexander Stubb says: "We have made a lot of progress - we are able to draft a very ambitious proposal and report for heads of state and government to discuss."
Greek Prime Minister Alexis Tsipras has spoken to US Treasury Secretary Jack Lew. Mr Tsipras told him that all sides must commit to a Greek deal. He added that Greece has shown it is ready to reach an agreement.
Martin Schulz, President of the European Parliament, has echoed the tough stance of Chancellor Angela Merkel. Yet again the word 'trust' has been brought up, with Mr Schulz saying Greece needs to earn it back.
He differed from Ms Merkel, though, by saying an agreement must be reached today.
"It can't be that the heads of government adjourn the meeting today without a result," he said.
"And I work under the assumption that there will be an agreement. Today is not only about a deal, this is about the unity of Europe. That is the responsibility of the Greek government but also the responsibility of all heads of government."
The spokesman for the president of the Eurogroup of finance ministers tweets...
The BBC's chief correspondent tweets...
Lithuania's President Dalia Grybauskaite brought up the word 'trust' again. She told the BBC: "There is no trust, there are not enough proposals, who will be governing the problems?"
She added that for Greece to gain trust "we want to see reliable actions. It is possible… we need reliable and verifiable actions."
- Copyright: AP
Maltese PM Joseph Muscat has been speaking to the press.
"I think we have to do our best to keep Greece in the eurozone but it can't come at any cost.
"The fact this summit has been convened in itself shows that there is a will to go the extra mile.
"There needs to be a realisation that what was enough 10 days ago is not enough today because the situation in Greece has deteriorated."
Reuters has got hold of a document listing the Greek reforms wanted by the Eurogroup negotiators.
They include agreeing to fully comply with a budget surplus target of 3.5% of GDP by 2018, carrying out "ambitious pension reforms", undertaking a "rigorous review" of the labour market, for example industrial action policies, and strengthening the balance sheets and regulation of the banks.
According to Reuters sources, Greece is also under pressure to pass early legislation to increase value-added tax and make the national statistics agency independent.
BBC Newsnight's economics correspondent tweets...
Support from Bulgaria, as Foreign Minister Daniel Mitov says that he wants Greece, as an immediate neighbour, to stay within the eurozone.
"It is clear that the other countries are stable enough - and economically strong enough - to keep the stability of the eurozone and to return the trust in it very quickly [if Greece leaves]," he says.
"But that will create future problems in Greece itself and as an immediate neighbour of Greece we would not want to see that."
A bit more from the French President Francois Hollande:"The challenge is to determine whether Greece will still be in the eurozone tomorrow."
German Chancellor Angela Merkel has just arrived and told reporters that she is here to negotiate.
"The situation is extremely difficult. There will be hard talks, and not unity at any price. I know it's tense but we must be sure to weigh the pros and cons."
"In the evening we will check if the conditions are there to start negotiations on an ESM programme for Greece. That's what it is about, no more no less - we have to wait and see if it succeeds."
Jean-Claude Juncker, president of the European Commission, has just arrived.
"I will fight until the last minute, the last millisecond, until we have a deal," he said.
French President Francois Hollande has just arrived.
"France wants to do everything it can to find an agreement tonight that would allow Greece - if conditions are met - to stay in the eurozone and allow Europe to move forward," he said.
He said there was no temporary Grexit on the cards.
Business correspondent, BBC News
Actions by the European Central Bank (ECB) tomorrow could overtake events in Brussels.
The ECB is supposed to be fully independent of politics and should act to maintain price stability ie inflation. It's already loaned €89bn in emergency cash to Greece and could demand more collateral from Greek banks for the money already loaned. That would kill them.
Don't forget the ECB is also expecting €3.5bn from Greece on 20 June. Before then the government has to pay all public sector workers their monthly salaries starting tomorrow. Would Syriza pay international creditors before their own citizens?
The clock could run out rapidly. Perhaps some Eurogroup members want exactly that.
- Copyright: AFP/Getty Images
Slovenia's Prime Minister Miro Cerar has just been speaking to the press as he arrived.
When asked whether patience with Greece had been expended, he replied:Quote Message: I wouldn't be here if I believed patience had run out. Leaders of European countries must show patience here.
Mr Cerar said he was hoping Greece would stay in the eurozone, and that he hoped it would "fulfill its obligations".
Greek PM Alexis Tsipras has arrived at the summit.
He says: "We can reach an agreement tonight if all parties want it."
He adds: "I'm here ready for an honest compromise, we owe that to the peoples of Europe who want Europe united and not divided. We can reach an agreement tonight if all parties want it."
Some reports in Germany said the country was considering a temporary exit for Greece from the euro. Our Berlin correspondent, Jenny Hill, reports on one response to that idea...
Email Message: How much more does Greece need? 40 billion euros? 70 billion? 100 billion? This is in addition to the 320 billion euros they already owe. And how much do the creditors expect to get back from a Government which cannot be trusted? They have had 4 years of bailouts to sort this out and have failed. Greece should never have been allowed to join the Euro and it is now time that they left.
- Copyright: Getty Images
As eurozone leaders arrive for talks in Brussels, the Dutch PM Mark Rutte has said Greece's exit from the eurozone would be guaranteed if it fails to obtain another bailout from the European Stability Mechanism.
"If finally there is no agreement over negotiating an ESM programme then it (Grexit) would be the result," he told reporters.
As today is proving, Grexit deadlines don't always stand up to the test of time.
However, in the draft Eurogroup statement that Reuters claims to have seen, it highlights two more major payments which Greece will need bailout funds for.
On 20 July, Greece will need €7bn to make a crucial bond redemption to the European Central Bank.
And then, in mid-August, another ECB payment of €12bn is due.
Simon emails: I thought today was supposed to be the 'final final deadline'? So if no agreement is made today, is there going to be a 'final final final deadline' tomorrow? It all feels a bit farcical to me.
- Copyright: Reuters
Greece's crisis is a story told in figures - some damning, some often widely quoted but misleading.
BBC Radio 4's More or Less programme has been looking at the statistics behind Greece's money worries - the episode is well worth half an hour of your time.
Reuters says it has got hold of a draft memo from the Eurogroup leaders - and they are playing hard ball.
It indicates that a deal is not going to happen today because not all the proposed austerity measures have been passed by the Greek parliament.Quote Message: The Eurogroup... came to the conclusion that there is not yet the basis to start the negotiations on a new programme.
It goes on to say that negotiations can begin only once Greece implements the austerity measures. These would include VAT and pension reforms, along with stronger taxes.Quote Message: Only subsequent to legal implementation of the above mentioned measures can negotiations on the memorandum of understanding commence, subject to national procedures having been completed.
This echoes what leaders were saying earlier that the Greeks needed to take the first steps before a bailout could be agreed.
While eurozone ministers debate, Russia has said it plans to help Greece's economic recovery. The country's Energy Minister Alexander Novak told reporters that Moscow is considering organising direct energy supplies to Greece. He added that he hoped an agreement would be reached within the next few weeks.
James Long tweets : Maybe the citizens of Europe should take a vote on whether to give bailout to Greece.
Greece's charities are preparing for the worst, reports Mashable.
"Whatever the outcome of Sunday or Monday is, one thing is certain," says Marie Halaka from the NGO Praksis.
"We are in the most demanding moment of these five, six years of crisis we have been coping with. We are in dire straits, and we are not going out easily."
Chris Morris, BBC News, BrusselsCopyright: Getty Images
Finance ministers gathered yet again this morning to talk about Greece, with frustration and fatigue to the fore. There are still clear divisions within the eurozone. France and others are pushing for a deal with Greece, while a group of sceptical countries led by Germany harbour grave reservations.
But there are still influential players pushing for an announcement today that negotiations on a third bailout with Greece can begin. That should be enough to allow the European Central Bank to intervene once again, and prevent Greek banks - which remain closed - going out of business. The fact that an additional meeting of all 28 EU leaders has been cancelled suggests that the focus is still on finding a deal within the eurozone, rather than looking at the consequences of a Greek exit.
George Terzis, a journalist for the Greek newspaper Kathimerini Daily has reported that the leaders of three Greek political parties, including the opposition New Democracy party, are phoning EU officials in Brussels.
Eurozone leaders are focused on "Plan A" for Greece, in other words keeping Greece in the euro, AP reporter Menelaos Hadjicostis says, quoting a European official close to the negotiations.
The official said eurozone leaders hoped to issue a statement that would pave the way for the formal start of Greek bailout negotiations. That would also allow the European Central Bank to give extra emergency funding to Greece's cash-strapped banks.
- Copyright: Getty Images
Greece's shipping industry - which makes up 7.5% of the Greek economy and employs around 200,000 people - is concerned about the new taxes it is likely to have to pay as a result of Greece's negotiations with creditors, reports the Wall Street Journal.
It currently pays no taxes on profits from shipping operations and no taxes on ship sales. According to the report, several ship owners said if the new rules came into force they would move elsewhere.
Agent Alba tweets : Whilst I am tired of Greece blaming everyone else for probs it caused, the ordinary people need help. The debt is too big.
- Copyright: Space Station
US astronaut Scott Kelly has tweeted: "#Athens, #Greece, #GoodMorning from @Space_Station. Wishing you the best. #YearInSpace
Jenny Hill, BBC News, Brussels
The heads of all 28 EU member states would have faced two scenarios this evening. Either talking about the political implications of a deal struck by the eurozone finance ministers with Greece or, if talks failed, managing the fallout and discussing the implications of a possible "Grexit".
So the cancellation of the summit could be interpreted in two different ways. The first - that talks are going so badly that there's no point in flying Europe's leaders in to discuss a deal that won't happen today.
But under those circumstances you'd expect leaders to gather for emergency talks. Which is why some here interpret the cancellation as a positive sign; it implies that, while a deal is still a long way off, the will to strike that deal - today - is there, even if the negotiations have been slow, painful and at times bad-tempered.
Greece's biggest banks and the finance ministry will meet tomorrow to discuss the country's cash restrictions says the Sunday Times. The paper adds they will discuss how to save the banking system from collapse after a large run on deposits. For the past fortnight Greeks have only been able to withdraw up to €60 (£43; $66) a day. Officials are apparently considering strict limits on international transfers by the public and businesses.
Reports of a German briefing paper with its conditions for a bailout were circulating yesterday.
The full paper has surfaced online today , with a few snippets continuing to pique interest on Twitter. But note that this has not been confirmed as being a formal German position paper.
They include the idea of Greece having to sign over assets as collateral:Quote Message: Transfer of valuable Greek assets of [50 bn] Euros to an external fund like the Institution for Growth in Luxembourg, to be privatized over time and decrease debt."
Confirmation of the story that there should be a temporary Grexit:Quote Message: Greece should be offered swift negotiations on a time-out from the Eurozone, with possible debt restructuring, if necessary, in a Paris Club - like format over at least the next 5 years."
And automatic penalties if Greece missed targets:Quote Message: Automatic spending cuts in case of missing deficit targets."
- Copyright: BBC
Sundays remain traditionally a day of rest in Greece.
In a playground in a residential neighbourhood, children scoot around on brightly coloured tricycles.
Old men play backgammon under cafe awnings.
People here have told me that the economic crisis has brought families closer together, and made them appreciate the simple things in life that really matter.
With most shops and companies closed down for the day, it is a welcome opportunity to tune off from the news of bank closures and capital controls.
But conversations continue. Voices are raised with the names "Schaeuble" and "Varoufakis" - Germany's finance minister and his former Greek counterpart.
Discussing the economic situation, its drama and deadlines, has become a national pastime here.
And with the negotiations reaching yet another peak in Brussels, there does not seem to be much respite in sight.
Avgi, a newspaper associated with Greece's ruling Syriza party has called for a cabinet reshuffle (in Greek).
Newsnight's economics correspondent has tweeted an alternative perspective on the reasons behind today's political brinkmanship.
Damian Ward tweets : I feel for the Greeks. They have dared to question the EU and will now pay a terrible price as a warning to others."
The BBC has been speaking to people in Athens' Syntagma Square. Many are angry with Germany's Finance Minister Wolfgang Schaeuble who some blame for the crisis.
Panagiotis Trikokglou told the BBC: "The only thing I care about is not being humiliated by Schaeuble and the rest of them. I don't care if we go to the drachma or whatever, we support the prime minister whatever decision he makes. But now I feel a little bad, not with the prime minister but with Germany's stance. This misanthrope Schaeuble, I don't know what he's trying to achieve."
With rumours swirling that Germany's Wolfgang Schaeuble favours a temporary Greek exit from the euro, Robert Peston has been examining what the consequences of this would be.Quote Message: So the first rather chilling thing I've learned, from well-placed bankers, is there have been no conversations between the Bank of Greece, the government or regulators and Greece's commercial banks about the technicalities of leaving the euro and adopting a new currency.Quote Message: This is astonishing - and some would say pretty close to criminal - given that on Wednesday night the president of the European Union, former Polish prime minister Donald Tusk, was explicit that this weekend's negotiations were all about whether Greece would stay in the eurozone.
You can read Robert's full blog here.
Luxembourg's Foreign Minister Jean Asselborn has warned Germany about pushing for a Grexit. On Saturday reports emerged that Germany was drawing up plans for Greece's temporary withdrawal from the eurozone.
"If Germany goes for Grexit," Mr Asselborn said, "it will trigger a deep conflict with France that will be a catastrophe for Europe."
Malta PM Joseph Muscat and Estonian PM Taavi Roivas have taken negotiations to a very public medium - Twitter!
Mr Muscat tweeted the conditions that he sees as key to the deal.
Which drew succinct approval from Mr Roivas.
The Estonian PM got a retweet, but sadly no reply from his Maltese counterpart.
Fred Croft tweets : They voted to sink, so let them sink - who am I to interfere with the democratic process.
The latest eurozone minister to weigh in on Greece might just have scooped quote of the day. Rimantas Sadzius, Lithuania's finance minister told reporters: "I hope there will be a magic moment today."
Here are the full quotes from Slovakian Finance Minister Peter Kazimir who earlier poured cold water on hopes of successful negotiations today.
As you can see, he's not particularly optimistic.
"It is not possible to reach a deal today. We can [make] certain recommendations for the heads of state, that is all. The breach of trust is so vivid it is not possible to reach a deal."
Mark Gledhill tweets : It's all so predictable, deal will be done, few months #Greece will again fail to meet payment & around we go!
Finland's Finance Minister Alex Stubb has concisely tweeted: "#Eurogroup begins."
He's 34 minutes late but with hours of talks ahead, we won't hold it against him.
Speaking on the BBC's Andrew Marr Show, business secretary Sajid Javid reassured viewers that the UK economy could weather a Greek debt default. He added that he foresaw these problems arising from the euro's inception.
"I think it was entirely predictable and really the countries that are in the eurozone, they really have to draw lessons for all of them from this and realise that if they want a single currency they are going to have to have a single country to go with it."
Phil Chudley emails:
Email Message: Today's big question is how far the can will be kicked down the road? It's patently obvious that Greece will never be able to grow whilst paying off such massive debts. I think the EU/Troika are more worried about the euro project rather than Greece. Grexit is the only way forward in the long term.
Despite his colleague Valdis Dombrovskis appearing to rule out a deal today, the European Commissioner for Economic and Financial Affairs Pierre Moscovici is signalling that we may see some progress.
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Despite an optimistic statement from Italian Prime Minister Matteo Renzi, the country's Economy and Finance Minister Pier Carlo Padoan has been a little more downbeat.
"The main obstacle to moving forward is lack of trust. I would like to see the Greek government take concrete actions starting tomorrow in parliament to implement measures that are needed for Greece in the first place and then rebuild trust to allow concrete negotiations to move forward. We have lost so much time, we cannot afford to lose more."
- Copyright: AP
Harris Georgiades, Cyprus' finance minister, said his country wants Greece to remain in the eurozone but that choices based on populism and extremes won't lead to a deal.
"We have to work less on the basis of emotion and more on the basis of reason and the difficult, but necessary choices that will create prospects."
IMF chief Christine Lagarde has arrived for talks but is yet to make any comment on Greece.
Sources say that Greece is seeking €16bn of bailout funds from the IMF.
The Slovakian Finance Minister Peter Kazimir has said that no deal will be done today, reports the BBC's Jenny Hill.
His assessment to another reporter is even bleaker...
With some saying the Greece bailout deal could reach €74bn ($82.6bn; £53.20bn) and Greece owing a staggering €320bn ($357bn; £230bn), here are some of the austerity measures Mr Tsipras has put forward:
- 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.
One of Germany's leading publications, Der Spiegel, has called on German Chancellor Angela Merkel to prevent a Grexit.
The paper says today is the most important in her time as chancellor and it is about nothing less than the future of the European Union.
As talks get underway, misery continues in Greece. The country's banks have been shut for two weeks now while a €60 (£43; $66) daily limit on cash machine withdrawals, continues to make life difficult. Many cash machines are out of notes while there have been reports of food and medicine shortages.
Valdis Dombrovskis has told reporters the EU probably won't be able to start talks for a new Greek bailout on Sunday.
"I think it's relatively unlikely that the European Commission will get a mandate to start formal negotiations."
This seems to suggest that a full deal won't be done today.
Our Chief Correspondent has tweeted on the scale of the problems that Greek banks face...
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Clarification on EU President Donald Tusk's tweet has arrived from his press office. The various Eurozone leaders will meet today at 1500 GMT but the full European Council with all 28 member states has been cancelled. It means the leaders will remain in talks until the Greek negotiations conclude.
Rumours that Finland will oppose a third bailout have been denied by the country's Finance Minister Alexander Stubb. However, he added that a deal was still a long way off.
"We need to have clear commitments, clear conditionality and clear proof that those conditions will be implemented at the end of the day. You know, if this was a negotiation from one to ten, I think we're still standing somewhere between three and four."
Austria, at least, remains somewhat optimistic. The country's Finance Minister Hans-Joerg Schelling has said Grexit is not on the table just yet.
"It wasn't discussed but, as I said yesterday, the proposal needs to be improved and, notably, there need to be guarantees it will be implemented. We have made progress on the improvements, there was none on the guarantees."