Bailout deal for Greece looks hopeful

European Commission chief Jean-Claude Juncker said he was convinced they could end the five-month standoff with the leftist Greek Government. Photo / AP

End is in sight to five-month standoff but Germany warns more hard work needed

Eurozone leaders hope to finally seal a bailout deal this week to save Greece from default and a possible exit from the euro, but Germany has warned more hard work is needed.

After an emergency summit in Brussels, they ordered their finance ministers to thrash out the details tomorrow before a full meeting of all 28 EU leaders on Friday.

European Commission chief Jean-Claude Juncker said he was convinced they could end the five-month standoff with the leftist Greek Government led by Prime Minister Alexis Tsipras.

French President Francois Hollande also said a deal was within reach. But German Chancellor Angela Merkel said that while Greece's plans were a good starting point for further talks, it was also clear that "absolutely intensive work is necessary now".

In a day of emergency summits in Brussels, the Greeks were told their plans to release bailout cash provided a good basis for further negotiations this week.

Athens' plans, which included rises in GST and pension reforms, were the first real proposals in many weeks, said Donald Tusk, the European Council president.

Signs of a tentative breakthrough came after Jacob Lew, the US Treasury Secretary, telephoned Tsipras and Jeroen Dijsselbloem, president of the Eurogroup body of finance ministers, to highlight the need for urgency.

Pressure is mounting on the European Central Bank to keep Greece's troubled banking system alive, amid tentative hopes Greece will finally be granted the bailout money it needs to avoid a debt default next week.

The possibility of capital controls was raised at an aborted meeting of eurozone finance ministers, with Belgium's Finance Minister admitting EU officials had discussed the draconian measures to stop money bleeding out of the financial system.

Greek concessions
• Athens has tabled a number of measures, amounting to €8 billion over the next two years.

• They include plans to revamp the country's GST system.

• An overhaul of pension contributions is also planned.

• Other measures include reducing the threshold on corporation tax and cutting defence spending.

- Telegraph Group Ltd, AFP