New proposals from Greece has raised hopes Mr Tsipras can strike a deal
The Greek Prime Minister, Alexis
Tsipras, is to hold fresh talks with his country's creditors as he tries
to secure an urgent deal on Athens' debt.
Greece must repay
€1.6bn (£1.1bn) to the International Monetary Fund (IMF) by the end of
the month, or face default and possible exit from the EU.European Union leaders have broadly welcomed Greece's latest proposals for reforms - but obstacles remain.
Eurozone finance ministers are due to finalise a deal on Wednesday evening.
The agreement being formed is believed to include:
- New taxes on businesses and the wealthy
- Selective increases in VAT
- Savings in pensions linked to curbing early retirement and increasing pension contributions
- No further reductions in pensions or public-sector wages - "red lines" for Greece's Syriza government
Only once agreement is reached will creditors unlock the final €7.2bn tranche of bailout funds.
Not everyone in Athens has welcomed the prospects of an agreement
Alexis Tsipras is returning to Brussels with criticism ringing in his ears, from members of his own party who argue that he has given up too much.
But Greece's creditors could be about to ask for more sacrifice, from a country that has already seen a quarter of its economy disappear.
The current budget proposal from Athens relies far more on raising taxes than cutting spending - and while the European Commission is pushing for a deal straight away, the IMF in particular appears to be unimpressed.
Trust is also in short supply, and Mr Tsipras will be told he has to get any prospective deal approved in the Greek parliament almost immediately, in order to give it legal backing. If he failed, he would have to resign.
An agreement will then have to be endorsed by Greece's parliament, with some critics at home accusing the left-wing prime minister of reneging on his party's campaign pledge to end austerity.
Austria's Finance Minister Hans Joerg Schelling told Austrian ORF radio on Wednesday it was "unforeseeable" what would happen next should no solution emerge.
German Chancellor Angela Merkel has said the Greek proposals "constitute some progress", but cautioned "there is a lot of work to be done and time is short".
"Greeks were living a nightmare" - Pensioners react to the prospect of a dealShe said however she would only consider debt relief after the current round of negotiations, which some analysts say are essential if Greece is to escape the cycle of scrambling to secure funds to pay off looming bills to creditors.
European Commission President Jean-Claude Juncker and EU Finance Commissioner Pierre Moscovici have said they are "convinced" that a final agreement will be reached.
Tight schedule - the week ahead
- Wednesday: Eurozone's 19 finance ministers meet to go through details of latest proposals
- Thursday-Friday: Scheduled meeting of all 29 EU member states - any agreement could receive leaders' backing here
- Saturday-Tuesday: Agreement will need to be approved by Greek parliament and other eurozone governments - including vote in German Bundestag
- Tuesday 30 June: Deadline for Greek repayment of €1.6bn to IMF
